Mississauga Mining Co. made a net income of $25 million in 2007, after the deduction of amortization expense of $8 million, interest of $5 million and taxes of $10 million. During 2007, it issued new shares for $15 million and used the proceeds to repay loans of $10 million; the remainder went into the bank's current account. The retained earnings brought forward at the start of 2007 were $60 million. There were 125,000 ordinary shares in issue at the end of 2007. The earnings per share were O $520 O $480 $400 $200 none of the above
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Subject : - Accounting
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- Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectivelyDuring the most current year, XYZ Corp paid $55,240 in interest and $80,400 in dividends. In order to fund a large expansion, the company also raised $297,000 in new equity and borrowed &197000 via the bond market, though a portion of the new borrowing was used to pay back $174,000 in bonds that were maturing this year. Calculate the cash flow to Shareholders.Cochrane, Inc. had $75,000 in cash on the balance sheet at the end of 2001. At year-end 2002, the company had $155,000 in cash. We know cash flow from operating activities totaled $1,250,000 and cash flow from long-term investing activities totaled -$1,000,000. Furthermore, Cochrane issued $250,000 in long-term debt last year to fund new projects, increase liquidity, and to buy back some common stock. If dividends paid to common stockholders equaled $25,000, how much common stock did Cochrane repurchase last year? (Assume that the only financing activities in which Cochrane engaged involved long-term debt, payment of common dividends, and common stock.)
- Last year Rattner Robotics had $5 million in operatingincome (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million,and its corporate tax rate was 40%. At year-end, it had $14 million in operating currentassets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable,and $15 million in net plant and equipment. Assume Rattner has no excess cash. Rattneruses only debt and common equity to fund its operations. (In other words, Rattner has nopreferred stock on its balance sheet.) Rattner had no other current liabilities. Assume thatRattner’s only noncash item was depreciation.a. What was the company’s net income?b. What was its net operating working capital (NOWC)?c. What was its net working capital (NWC)?d. Rattner had $12 million in net plant and equipment the prior year. Its net operatingworking capital has remained constant over time. What is the company’s free cashflow (FCF) for the year that just ended?e. Rattner has 500,000…Last year, Roswin Robotics have $5,000,000.00 in operating income (EBIT). Its depreciation expense was $1,000,000.00, its interest expense was $1,000,000.00 and its corporate tax rate was 40%. At year-end, it had $14,000,000.00 in current assets, $3,000,000.00 in accounts payable, $1,000,000.00 in accruals, $2,000,000.00 in notes payable and $15,000,000.00 in net PPE. Roswin had no other current liabilities. Assume that Roswin's only non-cash item was depreciation. Compute for the following: 1. Net Income 2. Net Operating Working Capital (NOWC) 3. Net Working Capital (NWC)Dobber Corporation had the following transactions in its first year of operations Sales (75 percent collected in the first year) $1250000 Disbursements for costs and expenses 600000 Purchases of equipment for cash 200000 Proceeds from issuance of ordinary shares 250000 Payments on short-term borrowings 25,000 Proceeds from short-term borrowings 50,000 Depreciation on equipment 40,000 Disbursements for income taxes 45,000 Bad debt write-offs 30,000 What is the cash balance at December 31 of the first year?
- During 2018, Raines Umbrella Corp. had sales of $800,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $90,000, and $150,000, respectively. In addition, the company had an interest expense of $89,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully deductible.) Suppose the company paid out $53,000 in cash dividends. If net capital spending and net working capital was zero, and if no new stock was issued during the year, what is the net new long-term debt? (Do not round intermediate calculations.) Net new long-term debtBlair Madison Company issues $2.5 million of new stock and pays $341,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.65 million in a new bond issue and paid off existing bonds with a face value of $2.75 million. The company bought 515 of another company's $1,150 bonds at a $115,000 premium. The net cash flow provided by financing activities is:Caterpillar Corporation paid $23,000 in dividends and $39,700 in interest over the past year. Sales totaled $178,900 with costs of $99,300. The depreciation expense was $13,200. The applicable tax rate is 35 percent. What is the amount of Cash Flow from Operating Activities, CFOA? A) 61,655 B) 47,255 C) 68,345 D) 30,555 E) 70,255
- Last year, LTD limited. reported $11,250 of sales, $4,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds outstanding that carry a 6.50% interest rate, and its federal-plus-state income tax rate was 35.00%. During last year, the firm had expenditures on fixed assets and net operating working capital that totaled $2,000. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $1,225. By how much will the depreciation change cause (1) the firm's net income and (2) its free cash flow to change? Note that the company uses the same depreciation for tax and stockholder reporting purposes. Do not round the intermediate calculations.During 2018, Raines Umbrella Corporation had sales of $749,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $576,000, $101,000, and $131,000, respectively. In addition, the company had an interest expense of $99,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corporation paid out $16,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what is the firm's net new long-term debt?Emery Mining Inc. recently reported $125,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes.