Year Net sales Costs of goods Depreciation Taxes paid Cash Accounts receivable 2019 2020 10000 12100 5000 6700 1000 500 1000 600 10500 10700 1900 1900 Inventory 1300 1400 Current liabilities 7600 5900 Net fixed assets 6800 6900 Please calculate the free cash flow in 2020 (keep zero decimal places).

Year Net sales Costs of goods Depreciation Taxes paid Cash Accounts receivable 2019 2020 10000 12100 5000 6700 1000 500 1000 600 10500 10700 1900 1900 Inventory 1300 1400 Current liabilities 7600 5900 Net fixed assets 6800 6900 Please calculate the free cash flow in 2020 (keep zero decimal places).

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter10: Financial Statements And Reports

Section: Chapter Questions

Problem 3.5C

See similar textbooks

Related questions

Q: Multiple Choice take some time. take some effort. result in lower stress. result in personal…

A: Daily money decisions include choices an individual makes regarding their finances.It includes…

Q: A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is…

A: Present value refers to the discounted value of future cash flows.future value is the compounded…

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: Price of the Bond refers to the present value of the future cash flow that includes both the coupon…

Q: MRK corporation has a DSO of 35 days. The company's annual credit sales are $10 million. What is the…

A: Solution:Days Sales Outstanding (DSO) refers to the periods (or days) an entity takes to recover its…

Q: Tina Black's Fabrics is currently an all equity firm that has 15,000 shares of stock outstanding at…

A: Earning per share measures company's profitability. It is calculated by dividing net income by…

Q: Based on the corporate valuation model, the value of a company's operations is $1,700 million. The…

A: One way to think of ownership in a firm is as a stock, which is also called an equity or share. A…

Q: Using the expectations hypothesis theory for the term structure of interest rates, determine the…

A: The expectation hypothesis theory refers to the theory that argues that the investor receives the…

Q: Cross Country Railroad Co. is about to issue $100,000 of 10-year bonds that pay a 5.5% annual…

A: Present value (PV) is a financial concept used to determine the current worth of a future sum of…

Q: Required information [The following information applies to the questions displayed below.] Taylor's…

A: In the given question Taylor’s is a popular restaurant that offers customers a large dining room and…

Q: 2 3 4 5 Term in years: Rate: 1 1.8% 2.25% 2.30% 2.66% 3.13% The table above shows the interest rates…

A: Here,Term in years:12345Rate:1.8%2.25%2.30%2.66%3.13%Initial Investment = $11,000To Find:Present…

Q: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is…

A: Capital restructuring refers to altering a company's financial structure, typically by changing its…

Q: How much should you deposit at the end of each month in an IRA that pays 10% compounded monthly to…

A: Compound interest could be a budgetary concept where intrigued is calculated on the introductory…

Q: Given: A = Php 13000 t = 5 years r = 10% m=4 Find: R every end of 3 months A Php95.04 B NO answer C)…

A: We can use the excel formula ''=PMT'' , to find the cash flow occurs at thee end of each period.

Q: Which of the following describes a bond's credit risk? O The probability that financially sound…

A: The credit risk of a bond refers to the likelihood that the issuer of the bond will default on its…

Q: Darrell Frye is planning to buy an office building at a cost of $983,000. He must pay 10% down and…

A: Here,Cost of Building is $983,000Down Payment is 10%Time Period of Loan is 30 yearsDetails of…

Q: For each of the following, compute the future value: Note: Do not round intermediate calculations…

A: Future value is the amount at which the current amount will grow over time at a compounded rate of…

Q: When Patey Pontoons issued 8% bonds on January 1, 2024, with a face amount of $700,000, the market…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year- end…

A: Total assets turnover ratio = Sales / Total AssetsTotal assets turnover ratio = $325,000 /…

Q: An engineering student borrows $4000 to pay tuition for his senior year. Payments are to be made in…

A: Given:Principal (PV) = $4000Annual Interest Rate(i) = 10%=0.10Compounded QuarterlyTotal number of…

Q: You currently have $8,700 to invest. You can invest the full amount now for a period of 9 years at…

A: Final Value after 9 years = $15,000Initial Value = $8,700Number of years (n) = 9

Q: ces Required information [The following information applies to the questions displayed below] On…

A: A bond is a debt market instrument that allows the institutions access to the public debt, the…

Q: What is the value of the deposit at time t = 2 years?

A: Deposit ( at the time = 0 ) = 200Rate = (1+ 4t)^-1t is time in years, so years t = 2 years

Q: Suppose that a certain stock trades at $50 (there will be no dividends.) A European put expiring in…

A: In order to solve the problem, we must first understand the concept of put call parity theorem. I…

Q: Consider the following information: Probability of Rate of Return If State of Economy State of…

A: The expected rate of return is the average amount of interest that investing in stock provides while…

Q: is expected to be received in 5 years and her last annual payment is expected in 10 years. She can…

A: Annual payment=$49900Interest rate=12.84%Period= 5 years

Q: 6. Suppose the stock price is $40 and the effective annual interest rate is 8%. a. Draw on a single…

A: Options are financial instruments that give the holder the right, but not the obligation, to buy or…

Q: common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ What…

A: The objective of the question is to calculate the price of a share of the company's common stock and…

Q: Elrond has made an investment that will generate returns that are based on the state of the economy.…

A: Portfolio variance:Portfolio variance is a statistical measure of how much the returns on different…

Q: The Chief Financial Officer of Eaton Medical Devices has determined that the firm’s capital…

A: This is a case of LP i.e. linear programming. LP entails an optimization of something subjected to…

Q: ect that will increase net income by 18%. The company will sell shares ach less the underwriter's…

A: EPS is earning per share and income earned by shareholders and can be obtained by dividing net…

Q: Your business had to borrow 584, 069.18 to cover some urgent experises. The loan carries an annual…

A: Loan amortization is the systematic process of gradually reducing the outstanding balance on a loan…

Q: Party Time, Inc. has a 6% coupon bond that matures in 11 years. The bond pays interest semiannually.…

A: Bond price refers to the market value at which a bond can be bought or sold. It is determined by…

Q: ABZ Inc. has 8% coupon bond on the market with 12 years to maturity. The bond makes quarterly…

A: Here,Face Value of Bond $1,000.00Sale Value of Bond in %106%Time to Maturity in years12Coupon…

Q: etter Burgers reported the following numbers (in millions) for the years ending February 2021 and…

A: Sustainable growth rate is the growth that can be obtained without any external funding required.

Q: A $15,000 loan with interest being charged at 10% compounded quarterly was made 2.5 years ago and is…

A: Loans are financial arrangements where a lender provides funds to a borrower, typically with the…

Q: A company is considering an iron ore extraction project that requires an initial investment of…

A: The internal rate of return is the minimum rate of return that should be earned by a company to…

Q: You plan to borrow $1,000 from a bank. In exchange for $1,000 today, you promise to pay $1,130 in…

A: The objective of the question is to understand the cash flow timeline from both the borrower's and…

Q: An investor purchased the following five bonds. Each bond had a par value of $1,000 and a 11% yield…

A: A bond indicates the debt instrument that entitles its holder the right to receive a particular…

Q: sume that a company is considering purchasing a machine for $100,000 that will have a seven-year…

A: Net present value is the difference between the present value of cash inflows and the present value…

Q: If you earn $2650 per month and you expect your earnings to increase by 7.2% per year, how much do…

A: PV =$2650r = 0.072n = 4FV =?

Q: Problem 17-07 A closed-end investment company has a net asset value of $12.50. A year ago the shares…

A: Investment means engaging your funds to generate income for the future. Return on investment means…

Q: RDJ Corp. has expected earnings before interest and taxes (EBIT) of $5,000 (assumed to continue…

A: The cost of equity refers to the rate of return required by speculators to compensate for the hazard…

Q: It is common for a financially healthy company to have a negative net working capital. O True False

A: Working capital refers to the amount of cash and other liquid assets that a company has available to…

Q: Based on the optimal interest rate and the estimate for loan losses what will charge on its…

A: Commercial loans are credit facilities that are provided to businesses or financial institutions…

Q: For each of the following annuities, calculate the annual cash flow: Note: Do not round intermediate…

A: Cash flow speaks to the development of cash into and out of an entity's accounts over a particular…

Q: The Rivoli Company has no debt outstanding, and its financial position is given by the following…

A: Unlevered value = (EBIT * (1 - T)) / rIntrinsic stock price = Unlevered / nEPS = EBIT / n…

Q: Capital Structure Debt @ 11% Common stock, $10 per share Total Common shares Operating plan Sales…

A: Degree of Combined leverage is used to calculate the optimum capital structure of the firm by…

Q: Jake's Used Cars just sold you a clunker (you need it to get to class on time). You financed the…

A: Rate of interest on borrowing refers to the cost or fee that a borrower pays to a lender in exchange…

Q: True or False

A: The objective of the question is to determine whether a European call option with a longer…

Q: Roller Inc. has just paid an annual dividend of $0.73. Analysts expect dividends to grow by 5% per…

A: Current Dividend = d0 = $0.73Growth Rate for next 6 years = g6 = 5%Growth Rate after 6 years = g =…

Concept explainers

Cash Flow Statement Analysis

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business during the fiscal year. The cash flow analysis is a method of analyzing an organization's investing, financing, and operating activities. A cash flow statement reveals an organization's liquidity and solvency, as well as its ability to change cash flows in the future. It eliminates the other effects of accounting methods by improving the comparability of different organizations' operational performance.

Question

Year
Net sales
Costs of goods
Depreciation
Taxes paid
Cash
Accounts
receivable
2019
2020
10000
12100
5000
6700
1000
500
1000
600
10500 10700
1900 1900
Inventory
1300
1400
Current liabilities
7600 5900
Net fixed assets
6800
6900
Please calculate the free cash flow in 2020 (keep zero decimal places).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define-free cash flow:

VIEW

Step 2: Calculate free cash flow 2020:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %18. Cash Flow Year 0 1 2 3 4 5 6 Select one: a.0.3073 b.0.2988 c.0.2565 d.0.2638 e.0.3491 f.0.2783 -3000 2000 4000 -1000 3000 4000 -5000 9000
es Consider the following cash flows: Year 013300 2 4 Cash Flow -$7,600 2,150 4,900 1,950 1,650 What is the payback period for the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Payback period years
Consider the following cash flows: Year Cash Flow 07234 -$ 7,600 1 2,150 4,900 1,950 1,650 What is the payback period for the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Payback period years
What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 -$1,977 1 $421 2 $889 3 $517 4 $939 Assume an interest rate of 3%
What is the internal rate of return for the following set of cash flows?Year Cash Flow0 -$60,0001 20,0002 20,0003 40,0004 40,000 Do not answer in excel format. Please give formula/handwritten or TI-84 calculator method
Year Net sales Costs of goods Depreciation Taxes paid Cash 2019 2020 10000 11000 5000 6400 1000 500 1000 600 10800 10700 Accounts receivable Inventory 1200 1500 Current liabilities 6500 5000 Net fixed assets 8700 9900 Please calculate the free cash flow in 2020 (keep zero decimal places). 2400 2300
Consider the following cash flows: Year Cash Flow 0123 $19,400 10,400 9,320 6,900 What is the IRR of the above set of cash flows? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return 96
Consider the following cash flows: Year 01234 Cash Flow -$5,100 1,500 2,600 1,300 1,000 What is the payback period for the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Payback period years
Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Balance Sheets for 2020 & 2021.
Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Income Statements for 2020 and 2021 (including dividends paid and retained earnings).
What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 - $1, 145 1 $459 2 $ 383 3 $411 4 $266 Assume an interest rate of 16% round off your answer by two decimal places!!!
What is the present value of the following set of cash flows at a 10% discount rate? Year Cash Flow OMR800 2 -OMR800 OMR800 4 -OMR800 3.