Toodles Inc. had sales of $1,840,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $1,180,000, $185,000 and $365,000 respectively. In addition, the company had an interest expense of $280,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carry forward provisions.) What was Toodles’s OCF?
Question 1
Toodles Inc. had sales of $1,840,000. Cost of goods sold, administrative and selling expenses,
and
the company had an interest expense of $280,000 and a tax rate of 35 percent. (Ignore any tax
loss carryback or carry forward provisions.)
What was Toodles’s OCF?
Question 2
Anti-Pandemic Pharma Co. Ltd. reports the following information in its income statement:
Sales = $5,250,000;
Costs = $2, 173,000;
Other expenses = $187,400;
Depreciation expense = $79,000;
Interest expense= $53,555;
Taxes = $76,000;
Dividends = $69,000.
$136,700 worth of new shares were also issued during the year and long-term debt worth
$65,300 was redeemed.
a) Compute the cash flow from assets
b) Compute the net change in working capital
Question 3
Footfall Manufacturing Ltd. reports the following financial information at the end of the current year:
Net Sales
$100,000
Debtor’s turnover ratio (based on net sales)
2
Inventory turnover ratio
1.25
Fixed assets turnover ratio
0.8
Debt to assets ratio
0.6
Net profit margin
5%
Gross profit margin
25%
Return on investment
2%
Use the given information to fill out the templates for income statement and balance sheet given below:
Income Statement of Footfall Manufacturing Ltd. for the year ending December 31, 20XX
(in $)
Sales
100,000
Cost of goods sold
Gross profit
Other expenses
Earnings before tax
Tax @50%
Earnings after tax
Balance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX (in $)
Liabilities
Amount
Assets
Amount
Equity
Net fixed assets
Long term debt
50,000
Inventory
Short term debt
Debtors
Cash
TOTAL
TOTAL
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