5 *Book Problem 2-26 Statement of Cash Flows (LG2-5) Dogs 4 U Corporation has net cash flow from financing activities for the last year of $36 million. The company paid $182 million in dividends last year. During the year, the change in notes payable on the balance sheet was $41 million and change in common and preferred stock was $0. The end-of-year balance for long-term debt was $330 million. Calculate the beginning-of-year balance for long-term debt Note: Enter your answers in millions of dollars. (ie, Enter 10,000,000 as 10.) Long-term deb

5 *Book Problem 2-26 Statement of Cash Flows (LG2-5) Dogs 4 U Corporation has net cash flow from financing activities for the last year of $36 million. The company paid $182 million in dividends last year. During the year, the change in notes payable on the balance sheet was $41 million and change in common and preferred stock was $0. The end-of-year balance for long-term debt was $330 million. Calculate the beginning-of-year balance for long-term debt Note: Enter your answers in millions of dollars. (ie, Enter 10,000,000 as 10.) Long-term deb

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 17P

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FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industries' 2013 and 2014 balance sheets (in thousands of dollars) are shown. 2014 2013 Cash 102,850 89,725 Accounts receivable 103,365 85,527 Inventories 38,444 34,982 Total current assets 244,659 210,234 Net fixed assets 67,165 42,436 Total assets 311,824 252,670 Accounts payable 30,761 23,109 Accruals 30,477 22.656 Notes payable 16,717 14,217 Total current liabilities 77,955 59,982 long term debt 76,264 63,914 Total liabilities 154,219 123,896 Common stock 100,000 90,000 Retained earnings 57,605 38,774 Total common equity 157,605 128,774 Total liabilities and equity 311,824 252,670 a. Sales for 2014 were 455,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 11% of net fixed assets, interest was 8,575,000, the corporate tax rate was 40%, and Laiho pays 40% of its net income as dividends. Given this information, construct the firm's 2014 income statement. b. Construct the statement of stockholders' equity for the year ending December 31,2014, and the 2014 statement of cash flows. c. Calculate 2013 and 2014 net operating working capital (NOWC) and 2014 free cash flow (FCF). d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders? e. Assume that the firm's after-tax cost of capital is 105%. What is the firm's 2014 EVA? f. Assume that the firm's stock price is 22 per share and that at year-end 2014 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2014?
Financial statements Padget Home Services began its operations on January 1, 20Y7 (see Problem 2-3). After its second year of operations. the following amounts were taken from the accounting records of Padget Home Services, Inc., as of December 31, 20Y8. Instructions Prepare a statement of cash flows for the year ending December 31, 20Y8. (Hint: You should compare the asset and liability amounts of December 31. 20Y8, with those of December 31, 20Y7, to determine cash used in investing and financing activities. See Problem 2-3 for the December 31, 20Y7, balance sheet amounts.)
MASTERY PROBLEM Financial statements for Peachfield Corporation as well as additional information relevant to cash flows during the period follow. Additional information: 1. Office equipment was sold during the year for 75,000. 2. Depreciation expense for the year was 62,400 as follows: 3. No other equipment was sold during the year. The following purchases were made for cash. 4. Declared and paid cash dividends of 20,000. 5. Issued 11,200 shares of 10 par common stock for 118,000. 6. Issued a note payable for 10,700. 7. Additional store equipment was acquired by issuing a long-term note payable for 20,000. REQUIRED 1. Prepare a statement of cash flows explaining the change in cash and cash equivalents. 2. Reconcile cash and cash equivalents at the bottom of the statement of cash flows.
FINANCIAL STATEMENTS The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2016 (Millions of Dollars) Davidson Corporation: Income Statement for Year Ending December 31, 2016 (Millions of Dollare) Sales 6.250 Operating costs excluding depreciation and amortization 5.230 EBITDA 1.000 Depreciation amortization 2.20 EBIT 800 Interest 180 EBT 620 Taxes (40%) 248 Net income 372 Common dividends paid 146 Earnings per share 3,72 a. Construct the statement of stockholders equity for December 31, 2016. No common stock was issued during 2016. b. How much money has been reinvested in the firm over the years? c. At the present time, how large a check could be written without it bouncing? d. How much money must be paid to current creditors within the next year?
FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industriess 2017 and 2018 balance sheets (in thousands of dollars) are shown. 2018 2017 Cash 102,850 89,725 Accounts receivable 103,365 85,527 Inventories 38,444 34,982 Total current assets 244,659 210,234 Net fixed assets 67,165 42,436 Total assets 311,824 252,670 Accounts payable 30,761 23,109 Accruals 30,477 22,656 Notes payable 16,717 14,217 Total current liabilities 77,955 59,982 Long-term debt 76,264 63,914 Total liabilities 154,219 123,896 Common stock 100,000 90,000 Retained earnings 57,605 38,774 Total common equity 157,605 128,774 Total liabilities and equity 311,824 252,670 a. Sales for 2018 were 455,150,000, and EBITDA was 15% of sales Furthermore, depreciation and amortization were 11%. of net fixed assets, interest was 8,575,000, the corporate tax rate was 40%, and Laiho pays 40% of its net income as dividends Given this information. construct the firms 2018 income statement. b. Construct the statement of stockholders equity for the year ending December 31, 2018, and the 2018 statement of cash flows. c. Calculate 2017 and 2018 net operating working capital (NOWC) and 2018 free cash flow (FCF). Assume the firm has no excess cash. d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid What effect would this have on taxis, paid by the companys shareholders? e. Assume that the firms after-tax cost of capital is 10 5%. What is the firms 2018 EVA? f. Assume that the firms stock price is S22 per share and that at year-end 2018 the firm has 10 million shares outstanding. What is the firms MVA at year-end 2018?