D Question 10 5 pts During 2015, Abbot Corporation had EBIT of 800,000, a change in net fixed assets of $300,000, an increase in current assets of $600,000, an increase in spontaneous current liabilities of $200,000, a depreciation expense of $100,000, and a tax rate of 30%. Based on this information, Abbot's free cash flow is. O -$80,000 O-$30,000 O -$140,000 O -$110,000

AFN Equation Refer to Problem 9-1. Return to the assumption that the company had 5 million in assets at the end of 2018, but now assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year? Why is this AFN different from the one you found in Problem 9-1?

Net Cash Flow -$18,000 +S1,800 +$2,160 +$2,592 +$4,100 +$2,700 +$3,000 +S3,300 +$3,600 EOY 1 2 3 4 5 6. 7 8 For the cash flow profile given above, an expression showing the present worth for an interest rate of 5% per year compounded annually is PW = _(P/A1- 5%, ( P/F 5%, (РA 5%, ( P/G 5%, } (P|F 5%,

Calculate: Profits before and after taxes Change in cash EBITD Coverage ratio REVENUE                             400,000 OPERATING COSTS          250,000 DEPRECIATION                  25,000 INTEREST                             20,000 PROFITS TAX                      20%

ok ences Mc Graw Hill Graff, Incorporated, has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000. If the tax rate is 23 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Operating cash flow 2 #3 3 89 $ 4 000 000 % 5 8

O What is the present value of the following cash flow stream at a rate of 17%? $8,442 $7,304 $9.485 $8,821 $11,762 Years: CFS: 0 $0 1 $1,500 2 $3,000 3 $4,500 4 $6,000

181 An investor is considering a business opportunity with the anticipated re- ceipts and disbursements shown in the following table. Calculate the net cash flow representing this investment, and then find the present worth of the net cash flow for an interest rate of 0% and 12%. Answer: $175,000; –$12,915 End of Year Disbursements Receipts $300,000 75,000 25,000 30,000 $ 20,000 60,000 1 135,000 180,000 210,000 4

at Peacier DC-bit anac Help acte 11.po cnapte 10 e e cise. 72.8% O 57 64 (Cash conversion cycle) Sims Electric Corp. has been striving for the last five years to improve its management of working capital. Historical data for the firm's sales, accounts receivable, inventories, and accounts payable follow: JAN- 05 JAN- 06 JAN- 07 JAN- 08 JAN- 09 5296 7759 12327 Sales-Net 3475 2873 Receivable- Total 411 538 726 903 1486 Accounts Payable 283 447 466 1040 1643 Inventories 220 293 429 251 233 a. Calculate Sims' days of sales outstanding and days of sales in inventory for each of the five years. What has Sims accomplished in its attempts to better manage its investments in accounts receivable and inventory? b. Calculate Sims' cash conversion cycle for each of the five years. Evaluate Sims' overall management of its working eapital. O Type here to search 82% 27°C

► CRC Inc. is buying new equipment that has the following cash flows: Year Cash Flow O-$17.7 What is the NPV if the interest rate is $6%? O $482.24 D -$537.78 0 -$500 O $22.44 1 $100 2 $200 3 $250

QUESTION 1 Given the following information Please calculate the Free Cash Flow to Equity EBIT Net Income Tax rate Depreciation Capital expenditure 2207.9 1513.5 21.80% 1807.1 954.6 Change in non-cash Working Capital -2176.3 Change in long term debt Interest Expense Liabilities Total Long Term debt Total Assets 4755 5470 3902 5628 927.6 395.3 24511.8 13220.6 26168.2