BA 321 Chapter 2 HW
2:
Net sales
Costs
Depreciation
EBIT
Interest
Taxable income
Taxes (21%)
Net Income
$742,000
$316,000
$39,000
$387,000
$34,000
$353,000
$74,130
$278,870
13: (in thousands)
Net sales
$336
Costs
$194.7 + 9.8
Depreciation
$20.6
EBIT
$110.9
Interest
$14.2
Taxable income
$96700
Taxes
$21.275
Net Income
$75425
A: OCF=110900+20,600-21,275=$110225
B: CFC=14,200+5,400= $19600
C: CFS= 21,450-7,100=$14,350
D: CFFA= 19600+14,350=33950
NCS=53200+20600=73800
CFFA=OCF-NCS-NWC
33950=110225-73800-NWC
NWC=110225-73800-33950=2475
17:
Net sales
Costs
Depreciation
EBIT
Interest
Taxable income
Taxes
Net Income
A: Net income = -$55,000
B: OCS= 35000+170000-0= $205,000
$865000
$535000+$125000
$170000
$35000
$90000
$0
$0
$-55,000
C: Net income is negative due to the massive costs and depreciation reducing the gross profit to
only $35,000 and with a $90,000 interest expense the total expenses supersede the net sales
resulting in a $55,000 loss. The Operating cashflow remains positive despite the company
having a negative net income as the OCS demonstrates that the company can still produce a
profit if not accounting for the heavy depreciation hits for the year that they would still be
profitable.
19:
A:
Net sales
Costs
Depreciation
EBIT
Interest
Taxable income
Taxes (22%)
Net Income
$38,072
$27,168
$6,759
$4,145
$3,050
$1,095
$240.9
$854.1
B: OCF= $4,145+$6,759-$240.9=$10663
C: CFFA=10663- NCS(12,022)- 1129= -2488
NWC 1: 3514 NWC 2: 4643
The company has a negative CFFA which means they are putting more money into the company
than they are actually earning
D: CFC=3050 CFS=CFFA-CFC=-5538
Net new equity =
20:
A:2020: TA-TL = 3376
2021: TA-TL= 4355
B:NWC= 2021(1438-595)-2020(1327-530)=46
C: NCS= 6587-5470+1499=2616
2616=2740-SOLD
SOLD=124
OCF= 7483+1499-1481.76=7500
CFFA=7500-2616-46=4838
D:
Net new borrowing= Borrowed amt- paid off amount
CFC= 427-184=243
Net new borrowing=3075-2891=184=554=paid off =370
21: CFFA= CFC+CFS
CFC=25630-20900=4730
CFS=14200-73371+27883=-31288
Net new borrowing
201900-181000=20900
CFFA=4730-31288=-26558