The following are selected numbers from the financial statements of a publically traded firm for 2016 and 2017 (in millions): 2016 2017 Revenues $618.0 $644.0 (Less) Operating Expenses ($392.4) ($405.94) (Less) Depreciation ($10.37) ($12.50) = Earnings before Interest and Taxes $215.23 $225.56 (Less) Interest Expenses ($0.0) ($0.0) (Less) Taxes ($31.28) ($30.40) = Net Income $183.95 $195.16 Working Capital $202.0 $260.50 The firm had capital expenditures of $21 million in 2016 and $17 million in 2017. The working capital in 2015 was $144 million. Estimate the cash flows to equity in 2016 and 2017.
The following are selected numbers from the financial statements of a publically traded firm for 2016 and 2017 (in millions): 2016 2017 Revenues $618.0 $644.0 (Less) Operating Expenses ($392.4) ($405.94) (Less) Depreciation ($10.37) ($12.50) = Earnings before Interest and Taxes $215.23 $225.56 (Less) Interest Expenses ($0.0) ($0.0) (Less) Taxes ($31.28) ($30.40) = Net Income $183.95 $195.16 Working Capital $202.0 $260.50 The firm had capital expenditures of $21 million in 2016 and $17 million in 2017. The working capital in 2015 was $144 million. Estimate the cash flows to equity in 2016 and 2017.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 17E
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The following are selected numbers from the financial statements of a publically traded firm for 2016 and 2017 (in millions): 2016 2017 Revenues $618.0 $644.0 (Less) Operating Expenses ($392.4) ($405.94) (Less)
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