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Knickerdoodles, Inc. 2004 2005 Sales $ 740 $ 785 COGS 430 460 Interest 33 35 Div

ID: 2660515 • Letter: K

Question

Knickerdoodles, Inc.

                                                                          2004       2005

                                    Sales                            $ 740 $ 785

                                    COGS                               430       460

                                    Interest                              33         35

                                    Dividends                         16         17

                                    Depreciation                   250       210

                                    Cash                                  70         75

                                    Accounts receivables   563       502

                                    Current liabilities           390       405

                                    Inventory                        662       640

                                    Long-term debt              340       410

                                    Net fixed assets          1,680    1,413

                                    Common stock               700       235

                                    Tax rate                          35%        35%

What is the operating cash flow (NOPAT + depreciation) for 2005?

Explanation / Answer

Earnings before interest and taxes = $785