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Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Common equity Total liabilities and equity EBIT Interest EBT Taxes (25%) Net income Balance Sheets Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Income Statements Shares outstanding Price WACC) Dividends paid Addition to retained earnings 2019 $100 275 375 $750 2,300 $3,050 $150 75 150 $375 450 825 1,225 1,000 2,225 $3,050 2019 $2,185 1,250 $935 100 $835 63 $772 193 $579 $54 $600 100 $25.00 10.00% 2018 $85 300 250 $635 1,490 $2,125 $85 50 75 $210 290 500 1,225 400 1,625 $2,125 2018 $1,635 1,000 $635 75 $560 46 $514 129 $386 $48 $337.5 100 $22.50

Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Common equity Total liabilities and equity EBIT Interest EBT Taxes (25%) Net income Balance Sheets Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Income Statements Shares outstanding Price WACC) Dividends paid Addition to retained earnings 2019 $100 275 375 $750 2,300 $3,050 $150 75 150 $375 450 825 1,225 1,000 2,225 $3,050 2019 $2,185 1,250 $935 100 $835 63 $772 193 $579 $54 $600 100 $25.00 10.00% 2018 $85 300 250 $635 1,490 $2,125 $85 50 75 $210 290 500 1,225 400 1,625 $2,125 2018 $1,635 1,000 $635 75 $560 46 $514 129 $386 $48 $337.5 100 $22.50

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 14E: Interest and Income Taxes Staggs Company has prepared its 2019 statement of cash flows. In...
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Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Common equity Total liabilities and equity EBIT Interest EBT Taxes (25%) Net income Balance Sheets Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Income Statements Shares outstanding Price WACC) Dividends paid Addition to retained earnings 2019 $100 275 375 $750 2,300 $3,050 $150 75 150 $375 450 825 1,225 1,000 2,225 $3,050 2019 $2,185 1,250 $935 100 $835 63 $772 193 $579 $54 $600 100 $25.00 10.00% 2018 $85 300 250 $635 1,490 $2,125 $85 50 75 $210 290 500 1,225 400 1,625 $2,125 2018 $1,635 1,000 $635 75 $560 46 $514 129 $386 $48 $337:5 100 $22.50
Transcribed Image Text:Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Common equity Total liabilities and equity EBIT Interest EBT Taxes (25%) Net income Balance Sheets Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Income Statements Shares outstanding Price WACC) Dividends paid Addition to retained earnings 2019 $100 275 375 $750 2,300 $3,050 $150 75 150 $375 450 825 1,225 1,000 2,225 $3,050 2019 $2,185 1,250 $935 100 $835 63 $772 193 $579 $54 $600 100 $25.00 10.00% 2018 $85 300 250 $635 1,490 $2,125 $85 50 75 $210 290 500 1,225 400 1,625 $2,125 2018 $1,635 1,000 $635 75 $560 46 $514 129 $386 $48 $337:5 100 $22.50
The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash. Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCF. Round your answer to the nearest cent.
Transcribed Image Text:The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash. Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCF. Round your answer to the nearest cent.
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