For dr.loizeaux only | Business & Finance homework help
4–6
Finding munificent and gratuitous coin progresss Consider the subjoined et sheets and chosen axioms from the pay declaration of Keith Corporation.
Keith Corporation Et Sheets | ||
|---|---|---|
| December 31 | |
Assets | 2015 | 2014 |
Cash | $ 1,500 | $ 1,000 |
Marketable securities | 1,800 | 1,200 |
Accounts receivable | 2,000 | 1,800 |
Inventories | 2,900 | 2,800 |
Total present assets | $ 8,200 | $ 6,800 |
Gross urban assets | $29,500 | $28,100 |
Less: Accumulated depreciation | 14,700 | 13,100 |
Net urban assets | $14,800 | $15,000 |
Total assets | $23,000 | $21,800 |
Liabilities and stockholders’ equity | ||
Accounts payable | $ 1,600 | $ 1,500 |
Notes payable | 2,800 | 2,200 |
Accruals | 200 | 300 |
Total present liabilities | $ 4,600 | $ 4,000 |
Long-term debt | 5,000 | 5,000 |
Total liabilities | $ 9,600 | $ 9,000 |
Common stock | $10,000 | $10,000 |
Retained earnings | 3,400 | 2,800 |
Total stockholders’ equity | $13,400 | $12,800 |
Total liabilities and stockholders’ equity | $23,000 | $21,800 |
Keith Corporation Pay Declaration Axioms (2015) | |
|---|---|
Depreciation expense | $1,600 |
Earnings anteriorly improvement and taxes (EBIT) | 2,700 |
Interest expense | 367 |
Net income behind taxes | 1,400 |
Tax rate | 40% |
- a.Calculate the firm’s net munificent improvement behind taxes (NOPAT) for the year ended December 31, 2015, using Equation 4.1.
- b.Calculate the firm’s munificent coin progress (OCF) for the year ended December 31, 2015, using Equation 4.3.
- c.Calculate the firm’s gratuitous coin progress (FCF) for the year ended December 31, 2015, using Equation 4.4.
- d.Interpret, collate, and opposition your coin progress estimates in parts b and c.
hey doc this is a team assignment and I merely own to secure bullet C. im going to bind the instructions intermittently on aword doc. not trusting how well-behaved-behaved this is going to exhibition on this website.