le Edit View History Bookmarks Finance 3101 Rachet Anson &8118 1153 AM Homework:

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le Edit View History Bookmarks Finance 3101 Rachet Anson &8118 1153 AM Homework: P2 (Financial Statements) Score: 0 of 1 pt 8 of 8(3 complete) Hw Score: 25%, 2 of 8 pts E Question Help iterestecerse of $19,000 tr 2014 and P2-11 (similar to) Cash now from assets. Use the data from the following financial statements in the popup window El The hadaroveral tax rate of 40% for 2014 Find te ash flom asses br 2014 rd break t arm. p net working capital company pad pe r at-teal spe eg meer The operating cash ewn$? (Rourd to the nearest dollar.) Enter your answer in the answer box and then click Check Answer Clear All This course (Finance 3101) is based on Brooks: Financial Managemen Core Concepts 3e Copyright 2018 Pearson Education 8 6 3

Explanation / Answer

First we have to calculate EBIT for the company (In $) Sales Revenue 349800 Less : Cost of Goods Sold -141900 Fixed Costs -43200 Selling, general and administrative expenses -28100 Depreciation -45900 EBIT 90700 Less : Interest -19000 EBT 71700 Less : Tax @ 40% 28680 Net Income 43020 Cash flow from assets = Operating cash flow + capital spending + changes in net working capital Operating cash flow = EBIT + Depreciation - Taxes 90700+45900-28680 107920 Capital Spending = Ending net Fixed assets - Beginning net fixed assets + Depreciation 447800-368200+45900 125500 Additions in Net working capital = Ending Net working capital - Beginning Net working capital ((26000+18900+53100)-(12200+24100)) - ((15900+28200+47900)-(13800+18800)) 61700 - 59400 2300 Cash flow from assets = 107920 + 125500 + 2300              $ 235720

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