Fundamentals of Corporate Finance
11th Edition
ISBN: 9781259870576
Author: Ross
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 10.5CTF
Summary Introduction
To calculate: The operating cash flow for the year.
Introduction:
The measurement of the amount of cash that a firm generates by its normal business operation is the operating cash flow. Thus, it indicates whether the firm can generate the adequate positive cash flow for the maintenance and growth of its operation or it needs any external financing.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Find the operating cash flow for the year for Monisan and Sons if it had sales revenue of $81,200,000, cost of goods sold of $35,700,000, sales and administrative costs of $6,800,000, depreciation expense of $8,000,000, and a tax rate of 30%.
Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of
$81,700,000,
cost of goods sold of
$34,300,000,
sales and administrative costs of
$6,200,000,
depreciation expense of
$7,100,000,
and a tax rate of
30%.
consider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries ( we usually call this SG&A for selling, general and administrative) of 1750.0million, depreciation of 2250.0 million, and interest expense of 2300 million. tax rate =21%.
a. generate an income statement and show net income
b. what is the company's operating cash flow?
c. if there are 775.2 million shares outstanding, what is the EPS?
d. if the company has a payout ratio of 20%, what is the dividends per share?
Chapter 10 Solutions
Fundamentals of Corporate Finance
Ch. 10.1 - What are the relevant incremental cash flows for...Ch. 10.1 - What is the stand-alone principle?Ch. 10.2 - Prob. 10.2ACQCh. 10.2 - Prob. 10.2BCQCh. 10.2 - Explain why interest paid is not a relevant cash...Ch. 10.3 - What is the definition of project operating cash...Ch. 10.3 - For the shark attractant project, why did we add...Ch. 10.4 - Prob. 10.4ACQCh. 10.4 - How is depreciation calculated for fixed assets...Ch. 10.5 - Prob. 10.5ACQ
Ch. 10.5 - Prob. 10.5BCQCh. 10.6 - Prob. 10.6ACQCh. 10.6 - Under what circumstances do we have to worry about...Ch. 10 - Prob. 10.1CTFCh. 10 - What should NOT be included as an incremental cash...Ch. 10 - Prob. 10.3CTFCh. 10 - An asset costs 24,000 and is classified as...Ch. 10 - Prob. 10.5CTFCh. 10 - Prob. 10.6CTFCh. 10 - Opportunity Cost [LO1] In the context of capital...Ch. 10 - Depreciation [LO1] Given the choice, would a firm...Ch. 10 - Net Working Capital [LO1] In our capital budgeting...Ch. 10 - Stand-Alone Principle [LO1] Suppose a financial...Ch. 10 - Prob. 5CRCTCh. 10 - Cash Flow and Depreciation [LOI] When evaluating...Ch. 10 - Capital Budgeting Considerations [LOI] A major...Ch. 10 - Prob. 8CRCTCh. 10 - Prob. 9CRCTCh. 10 - Prob. 10CRCTCh. 10 - Relevant Cash Flows [LO1] Parker Slone, Inc., is...Ch. 10 - Prob. 2QPCh. 10 - Calculating Projected Net Income [LO1] A proposed...Ch. 10 - Calculating OCF [LO1] Consider the following...Ch. 10 - OCF from Several Approaches [LO1] A proposed new...Ch. 10 - Calculating Depreciation [LO1] A piece of newly...Ch. 10 - Calculating Salvage Value [LO1] Consider an asset...Ch. 10 - Calculating Salvage Value [LO1] An asset used in a...Ch. 10 - Calculating Project OCF [LO1] Quad Enterprises is...Ch. 10 - Calculating Project NPV [LO1] In the previous...Ch. 10 - Prob. 11QPCh. 10 - NPV and Modified ACRS [LO1] In the previous...Ch. 10 - Project Evaluation [LO1] Dog Up! Franks is looking...Ch. 10 - Project Evaluation [LO1] Your firm is...Ch. 10 - Prob. 15QPCh. 10 - Calculating EAC [LO4] A five-year project has an...Ch. 10 - Calculating EAC [LO4] You are evaluating two...Ch. 10 - Calculating a Bid Price [LO3] Romo Enterprises...Ch. 10 - Cost-Cutting Proposals [LO2] Warmack Machine Shop...Ch. 10 - Comparing Mutually Exclusive Projects [LO1] Lang...Ch. 10 - Prob. 21QPCh. 10 - Prob. 22QPCh. 10 - Prob. 23QPCh. 10 - Comparing Mutually Exclusive Projects [LO4]...Ch. 10 - Equivalent Annual Cost [LO4] Compact fluorescent...Ch. 10 - Break-Even Cost [LO2] The previous problem...Ch. 10 - Break-Even Replacement [LO2] The previous two...Ch. 10 - Issues in Capital Budgeting [LO1] The debate...Ch. 10 - Replacement Decisions [LO2] Your small remodeling...Ch. 10 - Replacement Decisions [LO2] In the previous...Ch. 10 - Calculating Project NPV [LO1] You have been hired...Ch. 10 - Prob. 32QPCh. 10 - Calculating Required Savings [LO2] A proposed...Ch. 10 - Prob. 34QPCh. 10 - Calculating a Bid Price [LO3] Your company has...Ch. 10 - Replacement Decisions [LO2] Suppose we are...Ch. 10 - Conch Republic Electronics, Part 1 Conch Republic...Ch. 10 - Conch Republic Electronics, Part 1 Conch Republic...Ch. 10 - Conch Republic Electronics, Part 1 Conch Republic...Ch. 10 - Conch Republic Electronics, Part 1 Conch Republic...
Knowledge Booster
Similar questions
- A debt-free firm has profit for the year of $128 400, taxes of $46 200 and depreciation of $21 300. What is the operating cash flow?arrow_forwardOperating cash flow. Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of $81,500,000, cost of goods sold of $34,500,000, sales and administrative costs of $6,200,000, depreciation expense of $7,100,000, and a tax rate of 30%. The operating cash flow is $ (Round to the nearest dollar.)arrow_forwardOperating cash flow. Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of $78,200,000, cost of goods sold of $34,400,000, sales and administrative costs of $6,100,000, depreciation expense of $7,900,000,and a tax rate of 30%. The operating cash flow is $ (Round to the nearest dollar.)arrow_forward
- Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $318,600,000, cost of goods sold of $134,300,000, sales and administrative costs of $39,600,000, depreciation expense of $64,800,000, and a tax rate of 40%. The operating cash flow is $ (Round to the nearest dollar.)arrow_forwardKabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Year Cash Outflow Cash Inflow Net Cash Flow Cumulative Cash Flowarrow_forwardFind the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $310,000,000, cost of goods sold of $134,000,000, sales and administrative costs of $40,100,000, depreciation expense of $67,000,000, and a tax rate of 40%.arrow_forward
- Consider a company with earnings before interest and taxes (EBIT) of $450,000, tax rate of 16%, depreciation and amortization expenses of $60,000, capital expenditures of $80,000, acquisition expenses of $30,000 and change in working capital of $40,000. How much is its free cash flow during that period? Round to the nearest cent.arrow_forwardOperating cash flow. Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $308,900,000, cost of goods sold of $146,800,000, sales and administrative costs of $39,400,000, depreciation expense of$66,700,000, and a tax rate of 40% . The operating cash flow is $ (Round to the nearest dollar.)arrow_forwardBenson, Inc., has sales of $39,930, costs of $13,110, depreciation expense of $2,710 and interest expense of $1,970. The tax rate is 24 percent. What is the operating cash flow, or OCF?arrow_forward
- Bronze, Inc has sales of $58,200, costs of $25,300, depreciation expense of $3,100, and interest expense of $4,400. If the tax rate is 21 percent, what is the operating cash flow?arrow_forwardOperating cash flow. Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $305,400,000, cost of goods sold of $146,600,000, sales and administrative costs of $39,700,000, depreciation expense of $60,400,000, and a tax rate of 40%. The operating cash flow is $ (Round to the nearest dollar.)arrow_forwardConsider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries (we usually call this SG&A for selling, general and administrative) of $1,750.0 million, depreciation of $2,250.0 million, and interest expense of $2,300 million. Tax rate=21%. Generate an income statement and show net income. What is the company’s operating cash flow? If there are 775.2 million shares outstanding, what is the EPS? If the company has a payout ratio of 20%, what is the dividends per share?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning