Loose Leaf for Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
11th Edition
ISBN: 9781259709685
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 26, Problem 2QP
Cash Equation Blizzard Corp. has a book value of equity of $14,750. Long-term debt is $8,300. Net working capital, other than cash, is $1,950. Fixed assets arc $20,730 and current liabilities are 51,930. How much cash docs the company have? What arc current assets?
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Cash Equation
Blitz Corp. has a book value of equity of $17,010. Long-term debt is $8,400. Net working capital, other than cash, is $2,150. Fixed assets are $22,430 andcurrent liabilities are $2,260. How much cash does the company have? What are current assets?
Sergey Co. has net cash provided by operating activities of$1,200,000. Its average current liabilities for the period are$1,000,000, and its average total liabilities are $1,500,000.Comment on the company’s liquidity and financial flexibility,given this information.
Dawson Corp. reports the following information:
Net cash provided by operating activities: $285,000
Average current liabilities: $150,000
Average non-current liabilities: $100,000
Dividends declared: $60,000
Capital expenditures: $110,000
Payment of long-term debt: $35,000
What is Dawson's cash debt coverage ratio?
Question 11 options:
1.14
1.90
2.28
2.85
Chapter 26 Solutions
Loose Leaf for Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Ch. 26 - Prob. 1CQCh. 26 - Prob. 2CQCh. 26 - Prob. 3CQCh. 26 - Cost of Current Assets Grohl Manufacturing, Inc.,...Ch. 26 - Prob. 5CQCh. 26 - Shortage Costs What are the costs of shortages?...Ch. 26 - Prob. 7CQCh. 26 - Prob. 8CQCh. 26 - Prob. 9CQCh. 26 - Prob. 10CQ
Ch. 26 - Prob. 11CQCh. 26 - Prob. 12CQCh. 26 - Prob. 1QPCh. 26 - Cash Equation Blizzard Corp. has a book value of...Ch. 26 - Changes in the Operating Cycle Indicate the effect...Ch. 26 - Prob. 4QPCh. 26 - Calculating Cash Collections The Litzenberger...Ch. 26 - Prob. 6QPCh. 26 - Prob. 7QPCh. 26 - Calculating Payments The Thakor Corporations...Ch. 26 - Calculating Cash Collections The following is the...Ch. 26 - Prob. 10QPCh. 26 - Prob. 11QPCh. 26 - Prob. 12QPCh. 26 - Prob. 13QPCh. 26 - Prob. 14QPCh. 26 - Prob. 15QPCh. 26 - Prob. 1MCCh. 26 - Rework the cash budget and short-term financial...Ch. 26 - Rework the sales budget assuming an 11 percent...
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- Brief ExerciseRatio Analysis Valiant Corporation has $1,800,000 in total liabilities, $800,000 of which arc current. Valiant has $400,000 of cash and cash equivalents, $300,000 of other current assets, and $2,000,000 in property, plant, and equipment. Required: Calculate Valiants debt to equity ratio.arrow_forwardStatement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.arrow_forwardTidwell Company experienced the following during 20X1: a. Sold preferred stock for 480,000. b. Declared dividends of 150,000 payable on March 1, 20X2. c. Borrowed 575,000 from a bank on a 2-year note. d. Purchased 80,000 of its own common stock to hold as treasury stock. e. Repaid 5-year bonds issued for 400,000 that mature and are due in December. Required: Prepare the net cash from financing activities section of the statement of cash flows.arrow_forward
- A firm has EBIT OF $500,000 and depreciation expense of $24,000. Fixed charges total $44,000. Interest expense total $7,000. What is the firm’s cash coverage ratio?arrow_forwardMini Case: CASH FLOWS AT WARF COMPUTERS, INC. The following informations are given: During the year the company raised $118,000 in new long-term debt and retired $98,000 in long-term debt. The company also sold $11,000 in new stock and repurchased $40,000 in stock. The company purchased $786,000 in fixed assets and sold $139,000 in fixed assets. Balance sheet and Income Statement of the company: photos attached THE TASK: Based on the given informations and financial statements prepare the financial statement of cash flows and the accounting statement of cash flows. Also answer the following questions: How would you describe Warf Computers’ cash flows? Which cash flow statement more accurately describes the cash flows at the company? In light of your previous answers, comment on Nick’s expansion plans.arrow_forwardOgden Corporation has a projected balance sheet that includes the following accounts. What is the projected cash balance? Cash $ ? Marketable securities 405,000 Accounts receivable 980,000 Inventory 785,000 Non-current assets, net 2,110,000 Total liabilities 1,636,000 Total equity 3,220,000arrow_forward
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