Consider the following balance sheet and income statement for Mmm Good Foods Incorporated (thecompany that operates Tasty Fried Chicken and Pizza Party), in condensed form, including someinformation from the cash flow statement: (amounts are in millions)Mmm GoodFoodsIncorporated2019Balance Sheet$ 72238854462Cash and short-term InvestmentsAccounts receivableInventoryOther current assets4,104$5,730$1,45911,170Long-lived assetsTotal assetsCurrent liabilitiesTotal liabilitiesNoncontrolling interestShareholders' equityTotal liabilities and equity(5,440)$5,730Income StatementSales$ 6,5463,588$2,958$ 1,643Cost of salesGross marginEarnings before interest and taxesInterest325342TaxesIncome from discontinued operations607$1,583$ 815.91356.8Net incomeShare priceEarnings per shareNumber of outstanding shares (millions)Cash FlowsCash flow from operationsCapital expendituresDividends$ 1,222404784Required:Determine the valuation of the company at the end of 2019 using each of the following three methods.Assume earnings and cash flows for the coming 10 years are equal to the earnings and cash flows in2019; the appropriate free cash flow multiple is 23.4. (Enter your answers in millions rounded tonearest whole number.)a. Market capitalization.b. Enterprise value.c. Free cash flow multiple. a. Market capitalizationmillionb. Enterprise valuemillionc. Free cash flow multiplemillionReferencesLearning Objective: 20-04 Apply thedifferent methods for business analysisand business valuation.WorksheetDifficulty: 2 Medium

Market Capitalization: Market Capitalization = Number of shares outstanding ×Market price per share…

Required: Determine the valuation of the company at the end of 2019 using each of the following three methods. Assume earnings and cash flows for the coming 10 years are equal to the earnings and cash flows in 2019; the appropriate free cash flow multiple is 23.4. (Enter your answers in millions rounded to nearest whole number.) a. Market capitalization. b. Enterprise value. c. Free cash flow multiple.

Required: Determine the valuation of the company at the end of 2019 using each of the following three methods. Assume earnings and cash flows for the coming 10 years are equal to the earnings and cash flows in 2019; the appropriate free cash flow multiple is 23.4. (Enter your answers in millions rounded to nearest whole number.) a. Market capitalization. b. Enterprise value. c. Free cash flow multiple.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Consider the following balance sheet and income statement for Mmm Good Foods Inc. (the company that operates Tasty Fried Chicken and Pizza Party), in condensed form, including some information from the cash flow statement: (amounts are in millions) Mmm Good Foods Inc. Balance Sheet 2016 Cash and short-term Investments $ 706 Accounts receivable 372 Inventory 38 Other current assets 382 Long-lived assets 4,008 Total assets $ 5,506 Current liabilities $ 1,379 Total liabilities 11,138 Noncontrolling interest Shareholders’ equity (-5,632 ) Total liabilities and equity $ 5,506 Income Statement Sales $ 6,386 Cost of sales 3,508 Gross margin $ 2,878 Earnings before interest and taxes $ 1,627 Interest 309 Taxes 326 Income from discontinued operations 623 Net income $ 1,615 Share price $ 65 Earnings per share 4.31 Number of outstanding shares (millions) 355.2 Cash…
Prepare the Cash Flow Statement for the year ended 31 December 2022 using info below The information given below was extracted from the accounting records of Excellence Limited Information from the Statement of Financial Position as at 2022 R 2021 R Ordinary share capital 750 000 580 000 Retained earnings 145 000 60 000 Property, plant and equipment (see note) 475 000 410 000 Investments 248 000 220 000 12.5% Debentures 125 000 120 000 Inventory 320 000 260 000 Trade debtors 57 000 67 500 Bank ? Prepaid expenses 15 500 2 500 Trade creditors 60 000 85 000 Bank overdraft 50 000 South African Revenue Services 25 000 40 000 Extract from the Statement of Comprehensive Income for the year ended 31 December 2022 Profit before interest and tax 342 000 Depreciation on equipment 25 000 Dividends received on investment 30 000 Interest on debentures 22 500…
You are evaluating the balance sheet for Goodman bees corporation from the balance sheet you find the following balances cash and marketable securities equal $400,000, account receivable equals $1,200,000, Inventory equals $2,100,000 acured wages and taxes $500,000 accounts payable $800,000 notes payable $600,000 calculate goodman bees networking capital. answer in dollars not millions round your answer to the nearest dollar amount networking capital
Using the data given below, compute for the total amount of items that meet the definition of financial asset Cash P 100,000 Fair value through profit or loss securities 500,000 Investment in associate 2,000,000 Trade receivable 1,000,000 Inventories 800,000 Prepaid insurance 50,000 Interest rate swap receivable 200,000 Investment in debt securities – FVTOCI 400,000 Investment in debt securities – AC 350,000 Land 2,000,000 Buildings 3,000,000 Machinery and equipment 1,500,000 Patents 250,000
Use the information provided below to prepare the Cash Flow Statement of HarmonyLimited for the year ended 31 December 2020.INFORMATIONThe information provided below was extracted from the accounting records of Harmony Limited on 31 December 2020:Harmony LimitedExtract of Statement of Comprehensive Income for the year ended 31 December 2020RSales 6 600 000Cost of sales (3 900 000)Gross profit 2 700 000Operating expenses (1 710 000)Selling and administrative expenses 1 260 000Depreciation 450 000Operating profit 990 000Interest expense (270 000)Profit before tax 720 000Company tax (240 000)Profit after tax 480 000Extract of Statement of Changes in Equity for the year ended 31 December 2020RetainedearningsRBalance on 01 January 2020 1 500 000Profit after tax 480 000Dividends paid and proposed in 2020 (180 000)Balance on 31 December 2020 1 800 000Balances extracted from the Statement of Financial Position as at 31 December:2020 2019R RPlant and equipment 3 750 000 3 000 000Investments 210…
Use the information provided below to prepare the Cash Flow Statement of Umhlali Limited for the year ended 31 December 2020.INFORMATIONThe following Information was extracted from the records of Umhlali Limited for the past two years:STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:2020 (R)2019 (R)Sales1 856 0001 200 000Cost of sales(1 280 000)(750 000)Gross profit576 000450 000Operating expenses(291 200)(212 000)Depreciation30 00026 000Other operating expenses261 200186 000Operating profit284 800238 000Interest on mortgage loan(24 000)(72 000)Profit before tax260 800166 000Company tax(90 240)(58 100)Profit after tax170 560107 900vmcInformation extracted from the Statement of Financial Position for the past two years:STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:2020 (R)2019 (R)ASSETSNon-current assets2 464 1602 444 000Fixed assets2 464 1602 444 000Current assets356 000336 000Inventories (all Trading inventory)120 000250 000Accounts receivable40 00064 000Cash &…
Swifty Corporation has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Swifty Corporation for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 12/31/21 Cash $407000 $ 190000 Accounts receivable 360000 214000 Inventory 383000 479000 Property, plant and equipment $607000 $961000 Less accumulated depreciation (318000 ) 289000 (304000 ) 657000 $1439000 $1540000 . Accounts payable $ 175000 $ 95000 Income taxes payable 354000 391000 Bonds payable 358000 600000 Common stock 213500 218000 Retained earnings 338500 236000 $1439000 $1540000 INCOME STATEMENTFor the Year Ended…
Below are the financial data of XYZ Company, a not-for-profit entity for month of June, 2017.Cash – P2,500,300Accounts Receivable – P500,600Long-Term Investment – P1,500,000Plant, Property and Equipment – P5,600,000Accounts Payable – P350,600Notes Payable – P500,500Permanent Restricted Net Assets – 5% of Total Net AssetsTemporary Restricted Net Assets – 15% of Total Net AssetsTransactions for the month of July, 2017 Receive a car worth – P300,000 but treated as temporary restricted net assets Partial payment of accounts payable – P50,600 Issued a promissory notes worth – P150,500 Paid the salary of employees – P15,250 Reclassify 5% of May, 2017 temporary restricted net assets to unrestricted net assets. Compute the balance of unrestricted net assets as of July, 2017 a. 7,453,963.50 b. 7.453,963 c. 7,453,962.50 d. 7,453,964 Compute the balance of total assets as of July, 2017 a. 10,485,550 b. 10,485,500 c. 10,486,550 d. 10,487,550
Tabares Corporation had these transactions during 2020.Indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity. (a) Issued $50,000 par value common stock for cash. Investing ActivitiesNoncash Investing and/or Financing ActivitiesOperating ActivitiesFinancing Activities (b) Purchased a machine for $30,000, giving a long-term note in exchange. Investing ActivitiesOperating ActivitiesNoncash Investing and/or Financing ActivitiesFinancing Activities (c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. Operating ActivitiesNoncash Investing and/or Financing ActivitiesFinancing ActivitiesInvesting Activities (d) Declared and paid a cash dividend of $18,000. Operating ActivitiesFinancing ActivitiesNoncash Investing and/or Financing ActivitiesInvesting Activities (e)…
Use the information provided below to prepare the Cash Flow Statement of Harmony Limited for the year ended 31 December 2020. INFORMATIONThe information provided below was extracted from the accounting records of Harmony Limited on 31 December 2020: (Harmony Limited Information 2) Extract of Statement of Changes in Equity for the year ended 31 December 2020 Retained earnings R Balance on 01 January 2020 1 500 000 Profit after tax 480 000 Dividends paid and proposed in 2020 (180 000) Balance on 31 December 2020 1 800 000 Note:(a) Plant and equipment was purchased but there was no disposal. (b) The number of ordinary shares in issue was 930 000. (c) All purchases and sales of inventory were on credit. (d) Credit terms to debtors are 30 days. Debtors took approximately 28 days to settle their accounts during 2019.
Use the information provided below to prepare the Cash Flow Statement of Chelsea Limited for the year ended 31 December 2021 using the answer template provided (see images) Additional information: (See images)¦ Selling and administrative expenses include depreciation as follows:Depreciation on buildings R96 000Depreciation on plant and machinery R160 000¦ There were purchases but no disposals of property, plant and equipment for the financial year ended 31 December2021.¦ Total dividends for the year ended 31 December 2021 and 31 December 2020 amounted toR288 000 and R388 000 respectively.¦ Inventories on 31 December 2019 amounted to R560 000.¦ All purchases and sales of inventories were on credit.¦ The number of shares in issue was 400 000.¦ Credit terms from creditors are 90 days.
Kiley corporation had these transactions during 2022. Indicate whether each transactions is an operating activity, investing activity, financing activity, or noncash investing and financing activity (a) purchased a machine for $30000, giving a long term note in exchange (b) issued $50,par value common stock for cash(c) issued $200000 par value common stock upon conversion of bonds having face value of $20000 (d) declared and paid a cash dividend of $13000 (e) sold a long term with a cost of $15000 for $15000 cash (f) collected $16000 from sale of good (g) paid $18000 to suppliers

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