Given: Sales: 17,000,000 COGS: 11,000,000 Gross Margin: Admin Overhead: 2,500,00

Question

Given: Sales: 17,000,000 COGS: 11,000,000 Gross Margin: Admin Overhead: 2,500,000 EBITDA: Depr & Amort: 780,000 EBIT: Interest: 435,000 EBT: Taxes: 731,200 Net Income: Total Assets: 10,350,000 Total Interest-bearing Debt: 6,214,286 Total Current Liabilities: 500,014 Total Fixed Assets & IP: 7,500,000

GIVEN THE INFORMATION ABOVE, FIND:

17) Operating Cash Flow

18) Cash Flow From Assets [#18: Given that net Capital Spend is 250,000 and net increases to working capital is 100,000]

19) Effective total interest rate

20) Effective total corporate tax rate

Explanation / Answer

17) Calculation of operating cashflow Sales          17,000,000 Less:COGS          11,000,000 Gross Margin            6,000,000 Admin Overhead            2,500,000 EBITDA            3,500,000 Depreciation&amortisation                780,000 EBIT            2,720,000 Interest                435,000 EBT            2,285,000 Taxes                731,200 Net Income            1,553,800 Add: Depreciation                780,000 Operating Cash Flow            2,333,800 18) Cash flow from Assets Net Capital Spent                250,000 Net increase in WC                100,000 Cash flow from assets              (350,000) 19) Effective Total Interest Rate Interest                435,000 Total interest bearing Debt            6,214,286 Effective total interest rate per annum 7.00% 20) Effective total corporate tax rate Taxes                731,200 EBT            2,285,000 Effective total corporate tax rate 32.00%

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