Question

Dell Calculator Corporation had sales last year of $10 million, cost of goods sold of $5...

Dell Calculator Corporation had sales last year of $10 million, cost of goods sold of $5 million, depreciation of $1 million and interest paid of $1 million. At the beginning of the year, the company's net working capital was $400,000 and the company's net fixed assets were $58 million. At the end of the year, the company's net working capital was $500,000 and the company's net fixed assets were $60 million. The corporate taxation rate is 30%. What was the company's free cash flow last year?

Select one:

a. $2 million

b. $500,000

c. - $500,000

d. $1 million

e. $4 million

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For Year 2019 a firm had sales of $900,000, cost of goods sold of $685,000, depreciation...
For Year 2019 a firm had sales of $900,000, cost of goods sold of $685,000, depreciation expense of $35,000, interest expense of $15,000, and dividends paid of $18,800. At the beginning of the year, net fixed assets were $580,000, current assets were $300,000, and current liabilities were $140,000. At the end of the year, net fixed assets were $640,000, current assets were $400,000, and current liabilities were $200,000. The tax rate was 21%. Income Statement                                     6(a) What was the...
Butterfly Tractors had $17.00 million in sales last year. Cost of goods sold was $8.60 million,...
Butterfly Tractors had $17.00 million in sales last year. Cost of goods sold was $8.60 million, depreciation expense was $2.60 million, interest payment on outstanding debt was $1.60million, and the firm’s tax rate was 35%. A. What would happen to net income and cash flow if depreciation were increased by $1.60 million? (Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.) Net income would be by million Cash...
4. Last year Flying Tiger Inc. had operating revenues of $34.2 million. Its cost of goods...
4. Last year Flying Tiger Inc. had operating revenues of $34.2 million. Its cost of goods sold and selling expenses amounted to $31.4 million. Depreciation was $3.1 million. There are no income taxes and no interest expense. Assume that there was no change in working capital during the year. (a) What was Flying Tiger’s Net Income for the year? (b) What was Flying Tiger’s Operating Cash Flow for the year? Explain the intuition for the difference between income and operation...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund its...
Stenabolic Industries had the following operating results for 2019: sales = $15,200; cost of goods sold...
Stenabolic Industries had the following operating results for 2019: sales = $15,200; cost of goods sold = $11,400; depreciation expense = $2,700; interest expense = $520; dividends paid = $600.  At the beginning of the year, net fixed assets were $9,100, current assets were $3,200, and current liabilities were $1,800.  At the end of the year, net fixed assets were $9,700, current assets were $3,850, and current liabilities were $2,100.  The tax rate for 2015 was 34%. What is net income for 2019?...
Zigs Industries had the following operating results for 2015: sales = $26183; cost of goods sold...
Zigs Industries had the following operating results for 2015: sales = $26183; cost of goods sold = $16153; depreciation expense = $4913; interest expense = $2465; dividends paid = $1899. At the beginning of the year, net fixed assets were $17581, current assets were $5367, and current liabilities were $3941. At the end of the year, net fixed assets were $20981, current assets were $7870, and current liabilities were $3054. The tax rate for 2015 was 33 percent. If no...
Cusic Industries had the following operating results for 2015: sales = $28,260; cost of goods sold...
Cusic Industries had the following operating results for 2015: sales = $28,260; cost of goods sold = $19,410; depreciation expense = $4,980; interest expense = $2,340. At the beginning of the year, net fixed assets were $16,830, current assets were $5,790, and current liabilities were $3,240. At the end of the year, net fixed assets were $20,310, current assets were $7,116, and current liabilities were $3,870. The tax rate for 2015 was 30 percent. a. What was Net Income for...
Last year, Oviedo Products Corporation had sales of $1 million. The firm’s cost of goods sold...
Last year, Oviedo Products Corporation had sales of $1 million. The firm’s cost of goods sold amounted to 31% of sales and cash operating expenses were $240,000. Oviedo Products has $420,000 in equipment that it can expense over 5 years using simplified straight line depreciation. Therefore, the firm’s annual depreciation is (420,000/5) = $84,000. In addition, the firm received $30,000 in dividend income from its investments in common stocks of other companies. Also, Oviedo Products has a $750,000 loan from...
New Millenium Company earned $2.3 million in net income last year. It took depreciation deductions of...
New Millenium Company earned $2.3 million in net income last year. It took depreciation deductions of $290,000 and made new investments in working capital and fixed assets of $96,000 and $360.000, respectively. A. What was New Millenniums Free cash flow last year. B. Suppose that the company's free cash flow is expected to grow at 4% per year forever. If investors require a return of 9% on Millennium stock, what is the present value of Millenium's Future free cash flows?...
last year, western corp. had sales of $5 million, cost of goods sold of $3 million,...
last year, western corp. had sales of $5 million, cost of goods sold of $3 million, operating expenses of $175,000 and depreciation of $125,000. The firm received $40,000 in dividend income and oaid $200,000 in interest on loans. Also, western sold stock during the year, receiving a $40,000 gain on stock owned 6 years, but losing $60,000 on stock owned 4 years. what is the firm's tax payment? the tax rate is 21% please show work.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT