Carla Vista Company’s 2025 financial statements contain the following selected data: Income taxes $39000 Interest expense 25000 Net income 61000 Carla Vista’s times interest earned for 2025 is Select answer from the options below 3.4 times. 2.4 times. 5.0 times. 4.0 times.
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- Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a. Using the financial statements shown here for Lan Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was 65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020. Lan Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) Lan Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)C Company has the following data for the year ending 12/31/2020 (dollars are in thousands): Net income = $600; EBIT = $1,184; Total assets = $3,000; Short-term investments = $200; Total capital employed = $2,193; and tax rate = 30%. The company’s WACC is 11.07%. What was its Economic Value Added (EVA) for the year 2020? Round your answer to the nearest dollar. Group of answer choices: $583 $586 $577 $572 $580Use the information below to answer questions 3, 4, 5 and 6. 2020 2021 Sales $5,300 $5,900 Depreciation 750 850 COGS 2400 2900 Interest 180 196 Cash 200 500 Accts Receivables 200 400 Notes Payable 800 550 Long-term debt 1500 1950 Net fixed assets 3000 3500 Accounts Payable 250 400 Inventory 700 900 Dividend payout 30% 30% Tax rate 35% 30% What is the AR period for 2021?
- Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2018, for Humana. Reported Horizon Period $ millions 2018 2019 2020 2021 2022 TerminalPeriod Sales $56,912 $57,766 $58,632 $59,512 $60,404 $61,008 NOPAT 2,492 2,542 2,580 2,619 2,658 2,684 NOA 4,032 4,097 4,158 4,221 4,284 4,327 Answer the following requirements assuming a discount rate (WACC) of 7.8%, a terminal period growth rate of 1%, common shares outstanding of 135.6 million, net nonoperating obligations (NNO) of $(6,129) million, which is negative because Humana’s nonoperating assets exceed its nonoperating liabilities, and no noncontrolling interest (NCI) on the balance sheet. (a) Estimate the value of a share of common stock using the residual operating income (ROPI) model as of December 31, 2018. Instructions: Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not round), and…Yana Co. collected P15,000 interest during 2020. It showed P2,000 interestreceivable on its December 31, 2020, balance sheet and P6,000 on December 31,2019. The interest revenue on the income statement for 2020 amounted to?Give typing answer with explanation and conclusion 1) Marigold Corp. will receive $35,000 today (January 1, 2020), and also on each January 1st for the next five years (2021 – 2025). What is the present value of the six $35,000 receipts, assuming a 6% interest rate? Group of answer choices $210,000.00 $182,432.73 $172,106.35 $258,784.32
- Summerfields Sdn BhdBalance Sheet as at 31 December 2020 (RM’000)Cash 400 Account payable 1,200Marketable securities 500 Accrued wages 1,200Accounts receivable 750 Notes payable 700Inventories 500 Mortgage payable 2,200Net Fixed Asset 4,850 Common stock 500Retained earnings 1,200TOTAL ASSETS 7,000 TOTAL CLAIMS 7,000Additional information:-i) Sales in 2020 was RM 12 million and it is projected to increase to 18 million in 2021.ii) The company is operating at full capacity.iii) The net profit for this company in 2020 was RM1,200,000 and dividend payment wasRM300,000.iv) All external financing will be absorbed and met by common stock.Prepare a pro-forma balance sheet for Summerfields Sdn Bhd for the year ended 2021by using percent of sales method and determine the external funds required.What is the AR period for 2021? 2020 2021 Sales $5,300 $5,900 Depreciation 750 850COGS 2400 2900Interest 180 196Cash 200 500Accts Receivables 200 400Notes Payable 800 550Long-term debt 1500 1950Net fixed assets 3000 3500Accounts Payable 250 400Inventory 700 900Dividend payout 30% 30%Tax rate 35% 30%What is the ROE for 2021? 2020 2021 Sales $5,300 $5,900 Depreciation 750 850COGS 2400 2900Interest 180 196Cash 200 500Accts Receivables 200 400Notes Payable 800 550Long-term debt 1500 1950Net fixed assets 3000 3500Accounts Payable 250 400Inventory 700 900Dividend payout 30% 30%Tax rate 35% 30%
- Forecast income statement - ALL FIGURES IN $ MILLION Financial year ending 31 March 2023 2024 2025 Revenue 165.0 180.0 210.0 Less: Operating expenses 120.0 128.0 145.0 Operating earnings before depreciation 45.0 52.0 65.0 Less: Depreciation 30.0 32.0 25.0 Earnings before interest and tax (EBIT) 15.0 20.0 40.0 Less: Interest expense 5.0 5.0 5.0 Earnings before tax 10.0 15.0 35.0 Less: Tax expense 2.8 4.2 9.8 Net profit (earnings) 7.2 10.8 25.2 In addition, you have collected the following information: Operating working capital (OWC) in each year will be 10% of revenue in that year Capital expenditure (capex) will be $25 million in each year The corporate tax rate is 28%. What is Electrix's free cash flow to the firm (FCF) in year 2025? Thanks!CALCULATE THE INTEREST COVERAGE RATIO. For the year ended December 31, Notes 2020 2019 Revenue ₱ 10,775,731.00 ₱ 11,334,976.00 Cost of Sales 7,175,540.00 7,552,700.00 Gross profit 3,600,191.00 3,782,276.00 General and Administrative expenses 3,278,202.00 3,417,740.00 Finance Cost Or Interest Expense 48,000.00 16,000.00 Net Income before Tax 273,989.00 348,536.00 Provision for Income Tax 82,197.00 104,561.00 NET INCOME AFTER TAX ₱ 191,792.00 ₱ 243,975.00 (See Notes to Financial Statement)Laiho Industries^ 2018 and 2019 bal ance sheets (in thousands of dollars) are shown. a. Sales for 2019 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depre ciation and amortization were 18% of net fixed assets, interest was $8,583,000, the cor porate tax rate was 25%, and Laiho pays 47.25% of its net income as dividends. Given this information, construct the firm's 2019 income statement.b. Construct the statement of stockholders' equity for the year ending December 31,2019, and the 2019 statement of cash flows.c. Calculate 2018 and 2019 net operating working capital NOWC) and 2019 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 taxes paid by the company's shareholders?e. Assume that the firm's after-tax cost of capital is 10.5%. What is the firm's 2019 EVA?f. Assume that the firm's stock price is $22 per share…
