a)
To determine: Cash at the end of the year 2011 of M Company.
Introduction:
A company’s amount of cash derived after adding the changes to cash and the opening cash balance of the fiscal year is termed as cash at the end of the year.
b)
To determine: The accounts receivables and inventory at the end of 2011.
Introduction:
Any amount received by the debtors from the company is termed as accounts receivables.
A portion of assets like raw materials, WIP (work in progress), and finished goods of business that are ready to sale is termed as inventory.
c)
To determine: Total liabilities at the end of the year 2011.
Introduction:
The sum of financial obligations and other debts owed by the firm to any individuals in a specific period of time is termed as total liabilities.
d)
To determine: M Company’s net property, equipment, and plant at the end of 2011.
Introduction:
Acquisition of one company by another company for a specific value is termed as
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
EBK CORPORATE FINANCE
- Using the Financial Statements below Calculate the Free Cash flows for RPI , Inc for the year ended December 31, 2011 from an Asset perspective Calculate the Free Cash flows for RPI , Inc for the year ended December 31, 2011 from a Finance perspective ASSETS 2010 2011 LIABILITIES & EQUITY 2010 2011 Cash 12000 12750 Accounts Payables 36,000 41250 Marketable Securities 5250 5400 Notes Payables 12,000 9750 Accounts Receivables 31500 28500 Accruals 2,250 1875 Inventory 37500 69750 Tax Payable 2,250 1875 Prepaid Rent 900 825 Total Current Liabilities 52,500 54,750 Total Current Assets 87150 117225 Long Term Debt 120,000 112500 Net Plant & Equipment 214500 217500 Common Stockholders’ Equity 129150 167475 Total Assets 301650 334725 Total Liabilities and Equity 301,650 334,725 Sales 525000 Less: Cost of Goods Sold 375000 Gross…arrow_forwardYour company's financials included items in the table below. Based on this information what was your company's OPERATING CASH FLOW for 2007? Hint: you may not need all the information in the table to answer this correctly. Net Income Depreciation expense Accounts Receivable Inventory Accounts Payable Long Term Debt 2007 248 239 1312 1270 1022 1037 2006 126 178 1204 1514 1129 1158 QUESTION 4 Use the attached Beyond Meat financials to calculate EBITDA for 2020. To simplify the calculation I suggest you use the "shortcut" approach (start with operating income/loss). QUESTION 5 Use the attached Beyond Meat financials to calculate Free Cash Flow for 2020. To simplify the calculation, exclude the Asset Acquisitionarrow_forwardA complete set of financial statements for Hartman Company, at December 31, 2007, would include each of the following, EXCEPT: Income statement for the year ended December 31, 2007 or Statement of projected cash flows for 2008 or Notes containing additional information that is useful in interpreting the financial statements or Balance sheet as at December 31, 2007.arrow_forward
- Considering 2012 as the base year, you are required to compute the trend index for the following items: Revenue, cost of goods sold, total expenses and net earnings. Comment on the trends of each of the items. Total assets, total liabilities and shareholders’ equity. Comment on the trends of each of the items. Cash flow from operation, cash flow from investing, cash flow from financing and closing cash balances. Comment on the trends of each of the items.arrow_forwardThe following is the comparative balance sheet of Manish Ltd. Prepare a Cash Flow Statement for the year ended 31 December, 2016 from the details given below: Liabilities Assets 31st Dec., 31st Dec., 2015 31st Dec., 31st Dec., 2015 2016 2016 Share Capital Reserves & Surplus 730,000 755,000 Long-term loans Current Liabilities Fixed assets 760,000 792,500 Depreciation 717,500 27,500 Inventory Accounts 740,000 740,000 720,000 30,000 715,000 26,000 740,000 735,000 20,000 734,000 Receivable Dividend Provision 78,000 マ1,05,000 1,59,000 Cash 72,500 725,000 そ1,05,000 マ1,59,000 The Income statement for Manish Ltd. for the year ended 31 December 2015 shows the following information: Amount(*) 1,45,000 99,000 12,500 8,000 Sales Cost of Sales Tax provisions Dividend providedarrow_forwardRefer to the financial statements and related disclosure notes of The Kroger Company for the fiscal year endingJanuary 30, 2016. You can locate the report online from “investor relations” at www.kroger.com.Notice that Kroger’s net income has increased over the three years reported. To supplement their analysis ofprofitability, many analysts like to look at “free cash flow.” A popular way to measure this metric is “structuralfree cash flow” (or as Warren Buffett calls it, “owner’s earnings”), which is calculated as net income from operations, plus depreciation and amortization, minus capital expenditures.Required:Determine free cash flows for Kroger in each of the three years reported. Compare that amount with net incomeeach year. What pattern do you detect?arrow_forward
- Hello! look at the attached images and answee the following points: (a) Calculate ratios for the year ended 31 December 2021 (showing your workings) for Primrose Plc, equivalent to those provided above. Return on year-end capital employed Net asset turnover Gross profit margin Net profit margin Current ratio Closing inventory holding period Trade receivables’ collection period viii. Trade payables’ payment period Dividend yield Dividend cover (b) Analyse the financial performance and position of Primrose Plc for the year ended 31 December 2021 compared to 31 December 2020. (c) Explain the uses and the general limitations of ratio analysis. Thank you a lot!arrow_forwardCalculate the financial ratios of Spinneys in 2022 and 2021. Analyze the change between the years 2022 and 2021 in terms of financial ratios. Which financial ratios would you check to evaluate the performance of inventory management and cash management? Which year is better in terms of inventory management and cash management?arrow_forwardREQUIRED Study the statement of cash flows of Mantis Limited for the year ended 31 December 2021 and answer the following questions: Comment on the following: 1.3.1 Cash flows from operating activities (R181 800) 1.3.2. Increase in inventory (R808 000) 1.3.3 Increase in receivables (R606 000) 1.3.4 Interest paid (R80 800) 1.3.5 Cash flows from investing activities (R2 343 200) INFORMATION MANTIS LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 R Cash flows from operating activities (181 800) Operating profit 979 700 Depreciation ? Profit before working capital changes ? Working capital changes (808 000) Increase in inventory (808 000) Increase in receivables (606 000) Increase in payables 606 000 Cash generated from operations 494 900 Interest paid (80 800) Dividends paid ? Income tax paid (272 700) Cash flows from investing activities (2…arrow_forward
- A firm’s Balance Sheet and Income Statement for FY 2021 is displayed below and in the in the attached excel file. Answer the following questions. NOTE: For this question, use the end-of-the year approach (and not the mid-year convention). For example, this means that days receivables = end of FY receivables/daily sales; similarly for the remaining relevant ratios. You may use the tables below BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciation 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Decompose the return on equity for the FY 2021…arrow_forwardA firm’s Balance Sheet and Income Statement for FY 2021 is displayed below and in the in the attached excel file. Answer the following questions. NOTE: For this question, use the end-of-the year approach (and not the mid-year convention). For example, this means that days receivables = end of FY receivables/daily sales; similarly for the remaining relevant ratios. You may use the tables below BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciation 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Determine the NLF, NSF and the liquidity ratio…arrow_forwardAfter reviewing the information, calculate the following ratios for Nestlé for 2021:1) Inventory turnover2) Profit margin3) Return on assets4) Free cash flowRound all answers to two decimal places.arrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT