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Total common equity Total liabilities and equity Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income Income Statements: Dividends paid Addition to retained earnings Shares outstanding $2,225 $1,625 $3,050 $2,125 2018 $2,750 1,250 $1,450 100 $1,350 62 $1,288 515 $773 $53 $600 100 2017 $1,500 1,000 $500 75 $425 45 $380 152 $228 $48 $180 100

Total common equity Total liabilities and equity Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income Income Statements: Dividends paid Addition to retained earnings Shares outstanding $2,225 $1,625 $3,050 $2,125 2018 $2,750 1,250 $1,450 100 $1,350 62 $1,288 515 $773 $53 $600 100 2017 $1,500 1,000 $500 75 $425 45 $380 152 $228 $48 $180 100

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 99.1C: CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The income statement and consolidated balance sheets for...
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Retained earnings Total common equity Total liabilities and equity $ Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income Income Statements: Dividends paid Addition to retained earnings Shares outstanding Shares outstanding Price WACC c 100 $25.00 10.00% 1,000 $2,225 $3,050 2018 $2,700 1,250 $1,450 100 $1,350 62 $1,288 515 $773 $53 $600 100 100 $22.50 400 $1,625 $2,125 2017 $1,500 1,000 $500 75 $425 45 $380 152 $228 $48 $180 100 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 2018 free cash flow (FCF)? Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest dollar.
Transcribed Image Text:Retained earnings Total common equity Total liabilities and equity $ Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income Income Statements: Dividends paid Addition to retained earnings Shares outstanding Shares outstanding Price WACC c 100 $25.00 10.00% 1,000 $2,225 $3,050 2018 $2,700 1,250 $1,450 100 $1,350 62 $1,288 515 $773 $53 $600 100 100 $22.50 400 $1,625 $2,125 2017 $1,500 1,000 $500 75 $425 45 $380 152 $228 $48 $180 100 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 2018 free cash flow (FCF)? Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest dollar.
Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance Sheets: 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 Total comment 2018 $100 275 175 $750 2,300 $3,050 $150 75 150 $375 450 $825 1,225 1,000 #7:375 2017 $85 300 250 $635 1,490 $2,125 $85 50 75 $210 290 $500 1,225 400 41.61
Transcribed Image Text:Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance Sheets: 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 Total comment 2018 $100 275 175 $750 2,300 $3,050 $150 75 150 $375 450 $825 1,225 1,000 #7:375 2017 $85 300 250 $635 1,490 $2,125 $85 50 75 $210 290 $500 1,225 400 41.61
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