Question 3 Your firm has net income of $273 on total sales of $1,180. Costs are $660 and depreciation is $130. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow?
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- Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.Question 5So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense of $63,200 andinterest expense of $22,300. If the tax rate is 35%, (a) What is the operating cash flow or OCF?(b) Explain why interest paid is not a component of operating cash flow.1. SSSSS’ operating income (EBIT) is P500,000. The company’s tax rate is 40 percent, and its operating cash flow is P450,000. The company’s interest expense is P100,000. What is the company’s net cash flow? (Assume that depreciation is the only non-cash item in the firm’s financial statements.) 2. Calculate a firm's free cash flow if it has net operating profit after taxes of P60,000, depreciation expense of P10,000, net fixed asset investment requirement of P40,000, a net current asset requirement of P30,000 and a tax rate of 30%
- 1. SSSSS’ operating income (EBIT) is P500,000. The company’s tax rate is 40 percent, and its operating cash flow is P450,000. The company’s interest expense is P100,000. What is the company’s net cash flow? (Assume that depreciation is the only non-cash item in the firm’s financial statements.) 2. An analyst has collected the following information regarding YYYYY: Earnings before interest and taxes (EBIT) = P700 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million. Interest expense = P200 million. The corporate tax rate is 40 percent. Depreciation is the company’s only non-cash expense or revenue. What is the company’s net cash flow? 3. At the beginning of the year, KKKKK had P100,000 in cash. The company undertook a major expansion during this same year. Looking at its statement of cash flows, you see that the net cash provided by its operations was P300,000 and the company’s investing activities required cash expenditures of…Butterfly Tractors had $23.00 million in sales last year. Cost of goods sold was $9.80 million, depreciation expense was $3.80 million, interest payment on outstanding debt was $2.80 million, and the firm’s tax rate was 21%. What was the firm’s net income? Note: Enter your answer in millions rounded to 2 decimal places. What was the firm’s cash flow? Note: Enter your answer in millions rounded to 2 decimal places. What would happen to net income and cash flow if depreciation were increased by $2.80 million? Note: Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance. Would you expect the change in depreciation to have a positive or negative impact on the firm’s stock price? What would be the impact on net income if depreciation was $1 million and interest expense was $2 million? What would be the impact on cash flow if depreciation was $2.80 million and interest expense was $3.80 million? Note: Enter your…b) The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense is $200,000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the company’s net income? What is its net cash flow?
