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In: Finance
Seashell Mfg., Inc. had $750 million of sales last year, and it had $435 million of...
Seashell Mfg., Inc. had $750 million of sales last year, and it had $435 million of fixed assets that were used at only 65% of capacity. What is the maximum sales growth rate Seashell could achieve before it had to increase its fixed assets?
Solutions
jeff jeffy answered 3 years agoRelated Solutions
Last year LaCroix Optical had $145 million of sales, and it had $40 million of fixed...
Last year LaCroix Optical had $145 million of sales, and it had
$40 million of fixed assets that were used at 75% of capacity. Use
this information to solve the next two problems.
In millions, by how much could LaCroix Optical sales increase
before it is required to increase its fixed assets?
LaCroix Optical was approached by the Department of Defense
(DoD)because of their ability to manufacture the lens required for
night vision goggles. LaCroix Optical is the last remaining...
Last year LaCroix Optical had $145 million of sales, and it had $40 million of fixed...
Last year LaCroix Optical had $145 million of sales, and it had
$40 million of fixed assets that were used at 75% of capacity. Use
this information to solve the next two problems.
(10 points) In millions, by how much could LaCroix Optical
sales increase before it is required to increase its fixed
assets?
(10 points) LaCroix Optical was approached by the Department of
Defense (DoD)because of their ability to manufacture the lens
required for night vision goggles. LaCroix Optical...
Butterfly Tractors had $18.00 million in sales last year. Costof goods sold was $8.80 million,...
Butterfly Tractors had $18.00 million in sales last year. Cost
of goods sold was $8.80 million, depreciation expense was $2.80
million, interest payment on outstanding debt was $1.80 million,
and the firm’s tax rate was 21%.a. What was the firm’s net income? 3.63
millionb. What was the firm’s cash flow? 6.43
millionc. What would happen to net income and cash
flow if depreciation were increased by $1.80 million?(Enter your numeric answers in millions rounded to 2
decimal places. Select "unaffected"...
Butterfly Tractors had $17.50 million in sales last year. Cost of goods sold was $8.70 million,...
Butterfly Tractors had $17.50 million in sales last year. Cost
of goods sold was $8.70 million, depreciation expense was $2.70
million, interest payment on outstanding debt was $1.70million, and
the firm’s tax rate was 30%.
a. What was the firm’s net income?
(Enter your answers in millions rounded to 2 decimal
places.)
b. What was the firm’s cash flow?
(Enter your answers in millions rounded to 2 decimal
places.)
c. What would happen to net income and cash flow if...
Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million,...
Butterfly Tractors had $21.50 million in sales last year. Cost
of goods sold was $9.50 million, depreciation expense was $3.50
million, interest payment on outstanding debt was $2.50 million,
and the firm’s tax rate was 30%.
a.
What was the firm’s net income and net cash flow? (Enter
your answers in millions rounded to 2 decimal places. For example,
for $3.92 million, enter "3.92", not "3920000")
Net income
$ million
Net cash flow
$ million
b.
What would happen to net income...
Butterfly Tractors had $15.00 million in sales last year. Cost of goods sold was $8.20 million,...
Butterfly Tractors had $15.00 million in sales last year. Cost
of goods sold was $8.20 million, depreciation expense was $2.20
million, interest payment on outstanding debt was $1.20 million,
and the firm’s tax rate was 21%.
a. What was the firm’s net income?
(Enter your answers in millions rounded to 2 decimal
places.)
b. What was the firm’s cash flow?
(Enter your answers in millions rounded to 2 decimal
places.)
c. What would happen to net income and cash
flow...
Premium Excavators had $14 million in sales last year. Cost of goods sold was $8 million,...
Premium Excavators had $14 million in sales last year. Cost of
goods sold was $8 million, depreciation expense was $2 million,
interest payments on outstanding debt was $1 million, and the
firm’s tax rate was 21%.
What was the firm’s net income?
What was the firm’s cash flow?
What would happen to net income and cash flow if depreciation
were increased by $1 million?
Would you expect the change in depreciation o have a positive
or negative impact on the...
Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million,...
Butterfly Tractors had $21.50 million in sales last year. Cost
of goods sold was $9.50 million, depreciation expense was $3.50
million, interest payment on outstanding debt was $2.50 million,
and the firm’s tax rate was 30%.
a. What would be the impact on net income and cash flow if the
firm’s interest expense were $2.50 million higher. (Input
all amounts as positive values. Enter your answers in millions
rounded to 2 decimal places. For example, for $3.92 million, enter
"3.92",...
Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million,...
Butterfly Tractors had $21.50 million in sales last year. Cost
of goods sold was $9.50 million, depreciation expense was $3.50
million, interest payment on outstanding debt was $2.50 million,
and the firm’s tax rate was 30%.
a. What was the firm’s net income and net cash flow? (Enter your
answers in millions rounded to 2 decimal places. For example, for
$3.92 million, enter "3.92", not "3920000") Net income $ million
Net cash flow $ million
b. What would happen to...
Rio Corp had sales last year of $75 million. Analysts expect sales will grow 30% in...
Rio Corp had sales last year of $75 million. Analysts expect
sales will grow 30% in year 1 and 20% in year 2. Operating profit
margin is 25%. Capex is 30% of annual sales. Depreciation expense
is 70% of capex. Net Working Capital is 40% of sales. The WACC is
10%. The tax rate is 25%. Analysts expect a constant 4% per year
growth rate in FCFF after year 3. Excess cash is $150 million, and
Rio has $75 million...
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