202020192018 $,000$,000$,000EBIT-741,819734,3121,038,864Depreciation606,975485,625467,050Tax129,735196,548208,948Operating Cash Flow-264,5791,023,3891,296,966 New fixed assets14,836,50814,884,52314,986,813Old fixed assets14,884,52314,986,81314,236,644Depreciation606,975485,625467,050Net Capital Spending558,960383,3351,217,219 New current assets10,347,6866,922,4056,504,962Old current assets6,922,4056,504,9627,898,431New current liability4,964,1642,913,9263,120,099Old current liabilaty2,913,9263,120,0993,485,129Change in Net Working Capital 1,375,043623,616-1,028,439 Cash Flow From Assets-2,198,58216,4381,108,186Briefly comment the free cash flow of this company

The free cash flow calculation determines how much cash a corporation generates after paying its…

Answered: 2020 2019 2018 $,000 $,000 $,000 EBIT…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ASSET 2022 2021 CASH 260,000 200,000 TRADE RECEIVABLE 400,000 300,000 INVENTORIES 360,000 400,000 LAND 3,000,000 2,000,000 BUILDING 3,000,000 3,000,000 EQUIPMENT 80,000 150,000 ACCUMULATED DEPRECIATION -EQUIPMENT (30,000) (70,000) TOTAL 7,070,000 5,980,000 LIABILITIES & EQUITY TRADE PAYABLE 240,000 200,000 BOND PAYABLE 1,200,000 2,000,000 COMMON SHARES 2,400,000 1,200,000 RETAINED EARNING 3,230,000 2,580,000 TOTAL 7,070,000 5,980,000 ADDITIONAL INFORMATION PROFIT FOR 2022…
The project's NPV? WACC: 10.00% Year 0 1 2 3 Cash flows -$1,000 $450 $460 $470
2020 2019 Net profit for the year 1200 1100 Depreciation for the financial year 80 70 Accumulated depreciation 400 320 Fixed asset impairment reversal gains 50 20 Profits for the sale of fixed assets 100 50 Based on the above information, the cash flow of 2020 before changes in working capital accounts is?
- What amount should be reported as loss from investment in 2024? A. P320,000 B. P800,000 C. P200,000 D. P120,000
E10.21 (LO3) (Government Grants) Rialto Group received a grant from the government of £100,000 to acquire £500,000 of delivery equipment on January 2, 2019. The delivery equipment has a useful life of 5 years. Rialto uses the straight-line method of depreciation. The delivery equipment has a zero residual value. Instructions A. If Rialto Group reports the grant as a reduction of the asset, answer the following questions. 1. What is the carrying amount of the delivery cquipment on the statement of financial position at December 31I, 2019? 2. What is the amount of depreciation expense related to the delivery equipment in 2020? 3. What is the amount of grant revenue reported in 2019 on the income statement? B. If Rialto Group reports the grant as deferred grant revenue, answer the following questions. 1. What is the balance in the deferred grant revenue account at December 31, 2019?…
LiabilitiesOMRAssetsOMRShare capital400,000Land and building280,000Net profit60,000Plant and machinery700,000General reserve80,000Stock400,000Debentures840,000Debtors200,000Creditors200,000Bills receivables20,000Bills payable100,000Cash80,000Total1,680,000Total1,680,000 1>calculate total current liabilites 2>calculate total Current assets
V5. Determine the capitalized cost for an asphalt road that will require a construction cost of P10M, P50 000.00 each year-end for maintenance, plus an expenditure of P1M every four years for repayment. Money is worth 5% effective. (ANSWER:. P15,640,236.65) PLEASE USE AN ACTUAL FORMULA NOT EXCEL
Question 16 The following information relates to three possible capital expenditure projects. Because of capital rationing only one project can be accepted. Project: A B C . Initial cost R100 000 R115 000 R90 000 Expected life 5 years 5 years 4 years Scrap value R5 000 R7 500 R4 000 Cash-inflows R R R End year 1 40 000 50 000 27 500 2 35 000 35 000 32 500…
Question 15 The following information relates to three possible capital expenditure projects. Because of capital rationing only one project can be accepted. Project: A B C . Initial cost R100 000 R115 000 R90 000 Expected life 5 years 5 years 4 years Scrap value R5 000 R7 500 R4 000 Cash-inflows R R R End year 1 40 000 50 000 27 500 2 35 000 35 000 32 500…
How much is the total amount that would normally be reported as investment property? A. 130,000,000 B. 128,000,000 C. 137,000,000 D. 106,000,000 Show solution
The project's IRR? Year 0 1 2 3 4 5 Cash flows -$8,750 $2,000 $2,025 $2,050 $2,075 $2,100
A4 9a We find the following information on NPNG (No-Pain-No-Gain) Inc.: A4 9a EBIT = $2,000,000Depreciation = $250,000Change in net working capital = $100,000Net capital spending = $300,000 These numbers are projected to increase at the following supernormal rates for the next three years, and 5% after the third year for the foreseeable future: EBIT: 20%Depreciation: 10%Change in net working capital: 15%Net capital spending: 10% The firm’s tax rate is 35%, and it has 1,000,000 outstanding shares and $8,000,000 in debt. We have estimated the WACC to be 15%. a. Calculate the EBIT, Depreciation, Changes in NWC, and net capital spending for the next four years.

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	2020	2019	2018
	$,000	$,000	$,000
EBIT	-741,819	734,312	1,038,864
Depreciation	606,975	485,625	467,050
Tax	129,735	196,548	208,948
Operating Cash Flow	-264,579	1,023,389	1,296,966

New fixed assets	14,836,508	14,884,523	14,986,813
Old fixed assets	14,884,523	14,986,813	14,236,644
Depreciation	606,975	485,625	467,050
Net Capital Spending	558,960	383,335	1,217,219

New current assets	10,347,686	6,922,405	6,504,962
Old current assets	6,922,405	6,504,962	7,898,431
New current liability	4,964,164	2,913,926	3,120,099
Old current liabilaty	2,913,926	3,120,099	3,485,129
Change in Net Working Capital	1,375,043	623,616	-1,028,439

Cash Flow From Assets	-2,198,582	16,438	1,108,186