For 2018, gourmet kitchen products reported $22 million of sales & $19 million of operating costs (including depreciation). The compnay had $15 million of total invested capital. Its after tax cost of capital is 8% h its federal-plus- state income tax rate was 34%. What was the firm's economic value added (EVA) thay is how much value did management add to stockholders wealth during 2018?

Q: The Malia  Corporation had sales in 2019 of $65 million, total asswets of $42 million, and total…

A: Given:Sales=$65 million in year 2019Assets = $42 millionOperating profit margin = 12%Liabilities =…

Q: You are considering an investment in National Corporation and want to evaluate the firm's free cash…

A: Free Cash flow: The term ‘free cash flow’ represents the inherent ability of the business to…

Q: Emery Mining Inc. recently reported $125,000 of sales, $75,500 of operating costs other than…

A: given, sales =$125,000 operating cost = $75,500 depreciation = $10,200 bond = $16500 interest rate =…

Q: Last year Rattner Robotics had $5 million in operatingincome (EBIT). Its depreciation expense was $1…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: EVA

A: Formula for calculating Economic value added (EVA) is: Operating income after tax less annual cost…

Q: Pearls, Inc. had sales in 2015 of $2.1 million. The common stockholders received $600,000 in cash…

A:

Q: Last year, Jackson Tires reported net sales of $40,000,000 and total operating costs (including…

A: Net sales = $40,000,000 Total operating costs = $26,000,000 Net profit before tax = Net sales-Total…

Q: JP Inc. had the following information expressed in millions of $: 2019 2020 Net Fixed Assets 2,000…

A: We need to find FCF to calculate the Intrinsic value of the firm:FCF 2020=After tax operating…

Q: For 2018, Gourmet Kitchen Products reported $22.5 million of sales and $18 million of operating…

A: Economic value added (EVA) is a measure of a company's economic profit. It is the value created…

Q: For 2018, Gourmet Kitchen Products reported $22 million of sales and $19 millionof operating costs…

A: Economic value added is used to determine the financial position of the company based on its…

Q: During 2015, Al-Ahd Corp. had sales of $950,000. Cost of goods sold, administrative and selling…

A: The term gross profit represents gross earnings generated after subtracting all production costs…

Q: How much free cash flow did the firm generate during the current year? Round your answer to the…

A: Information Provided: Tax rate = 35% Previous operating capital = $2100 Current operating capital =…

Q: The Emerald Corporation had $55,000 in cash at year-end 2010 and $25,000 in cash at year end 2011.…

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: Last year Rattner Robotics had $5 million in operating income (EBIT). Its depreciation expense was…

A: a. Net income=(EBIT-Interest)×(1-tax rate)=$5,000,000-$1,000,000×1-0.40=$2,400,000

Q: In 2017, Eraser Corp had Revenue of $200 million, Cost of Goods Sold of $100 million (this includes…

A: After tax cash flow generated by Eraser Corp in 2017 should be Net profit - taxes + depreciation…

Q: Please consider the following financial numbers for Carridine Company and then prepare answers to…

A: Net income is the income which is left with the company after paying off its expenses. Net income is…

Q: The 2021 and 2020 balance sheets for Sunset Industries are provided below. The company’s sales for…

A: CALCULATION OF NET INCOME PARTICULARS CALCULATION AMOUNT ($) EBITDA= (15% of sales) 15% x…

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…

A: Calculation of Free Cash Flow using excel:

Q: For 2018, Gourmet Kitchen Products reported $23 million of sales and $18 million of operating costs…

A: EVA: It is the excess profit that a company generates over & above the expected returns of the…

Q: The School of Mensis recently reported an Earnings Before Interest and Taxes (EBIT) of $37,500, and…

A: Free Cash Flow = EBIT *(1-tax rate) + depreciation and amortization - change in net working capital…

Q: A company has annual after-tax operating cash flows of P2,000,000 per year which are expected to…

A: After-tax operating cash flows = P 2,000,000 After tax WACC = 8%

Q: TSW Inc. had the following data for last year: Net income = $850; Net operating profit after taxes…

A: Free cash flow = Net operating profit after taxes - Increase in Total operating capital

Q: Picollo had after tax earnings of P5,000,000 in 2014. The company needs P5,000,000 for new…

A: According to residual dividend policy, dividend is paid when amount left after set aside the amount…

Q: In 2018, Martinez Corporation reported net sales of $232,900, cost of goods sold of $139,700,…

A: Given the following information: Year 2018 Net sales: $232,900 Cost of goods sold: $139,700…

Q: For 2018, Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including…

A: Sales= $11,500 Operating Costs= $5,000 Invested Capital= $20,500 WACC= 8% Tax rate= 40% EVA=?

Q: Sales revenue- P500,000 ·       Cost of Goods Sold- P350,000 ·       Operating Expenses- P55,000…

A: Answer Comprehensive income =$117000  Correct answer option A)117000 Comprehensive income is the sum…

Q: In​ 2016, the Allen Corporation had sales of $61 ​million, total assets of $43 ​million, and total…

A: given sales=$61 million total asset = $43 million total liabilites = $15 million interest rate=5.8%…

Q: Last year the P.M. Postem corporation had sales of $419,000, with a cost of goods sold of $111,000.…

A: Income statement is the financial statement of the company that shows the revenue and expenditures…

Q: Home depot entered fiscal 2017 with a total capitalization of $21,940 million. In 2017 debt…

A: Measure company's financial performance based on the residual wealth.  Economic value added (EVA) =…

Q: Do I have this set-up correctly? 3-11 EVA  For 2018, Gourmet Kitchen Products reported 22,000,000 of…

A: Hi, Please refer to the below steps for the correct calculation of Economic Value added (EVA). Net…

Q: Target industries reported $11,500 of sales and $5,000 of operating costs (including depreciation).…

A: A method that helps to measure a company’s financial performance by deducting the overall cost of…

Q: The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.2 million in long-term debt, $800,000…

A: OCF is net cashflow which is arises from only operating activities or it is the difference of net…

Q: In its most recent financial statements, Del-Castillo Inc. reported $60 million of net income and…

A: The companies that are financed with equity do not pay all their earnings to shareholders as…

Q: During 2018, Raines Umbrella Corp. had sales of $800,000. Cost of goods sold, administrative and…

A: Answer and calculations are given below

Q: During 2018, Raines Umbrella Corp. had sales of $742,000. Cost of goods sold, administrative and…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Company XYZ, an all-equity firm, reported incremental revenues (net income) of $336 million for the…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: purchased additional equipment for $11.7 million at the end of 2016, and this equipment was…

A: Depreciation is the reduction in the value of fixed assets due to normal wear and tear, passage of…

Q: Last year, Roswin Robotics have $5,000,000.00 in operating income (EBIT). Its depreciation expense…

A: Net Operating Working Capital = Operating Current Assets - Operating Current Liabilities Net Working…

Q: In 2016, the Allen Corporation had sales of $62 million, total assets of $47 million, and total…

A: Given the following information: Sales: $62,000,000 Total assets: $47,000,000 Total liabilities:…

Q: A company's sales in 2020 were $3.7 million and its total spontaneous assets were $9.7 million. Also…

A: Given:Company sales in 2020 were $3.7 millionAssets=$9.7 millionLiabilities consists of:Wages…

Q: what is the firm's net new long-term debt?

A: Long-Term Debt: It refers to debt that has a maturity greater than one year.  Long-term debt is…

Q: Lala Company reported the following information in 2021: ·       Sales revenue- P500,000 ·…

A: Answer) Total Comprehensive income before tax includes all Operating and non-operating incomes net…

Q: In 2020, ABC corporation had sales revenue of $313,500, operating costs of $275,750, and year-end…

A: Given:

Q: A company's sales in 2020 were $5.2 million and its total spontaneous assets were $3.2 million. Also…

A: Raising of funds: Funds are raised in two ways either by the option of debt or by the option of…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.