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In: Finance
The Boss Corporation has operating income (EBIT) of $750,000. The company's depreciation expense is $200,000. Boss...
The Boss Corporation has operating income (EBIT) of $750,000. The company's depreciation expense is $200,000. Boss Corp. is 100% equity financed, and it faces a 40% tax rate. They invested $100,000 in Net Fixed Assets, and $25,000 in additional working capital. what are the company's net income, its net cash flow, operating cash flow and cash flow from assets?
net income = $450,000; operating cash flow = $650,000; cash flow from assets = $525,000
1. How much was cash flow to shareholders?
2. How large was the dividend paid to shareholders?
Solutions
jeff jeffy answered 4 months agoRelated Solutions
The Moore Corporation had operating income (EBIT) of $800,000. The company's depreciation expense is $240,000. Moore...
The Moore Corporation had operating income (EBIT) of $800,000.
The company's depreciation expense is $240,000. Moore is 100%
equity financed, and it faces a 35% tax rate.
What is the company's net income?
$
Assuming no changes to any of the Balance Sheet accounts, what
is its net cash flow?
$
Question: Based on the following transactions, complete this income statement: Sales: Operating Expense: Depreciation Expense: EBIT:...
Question: Based on the following transactions, complete this
income statement:
Sales:
Operating Expense:
Depreciation Expense:
EBIT:
Intresrest Expense:
Pre-tax Income:
Taxes:
Net Income:
Dividened:
Paid to Retained Earning:
1. Earn $85,000 in
sales revenue: $40,000 into Accounts Receivable and $45,000 in
cash.
2. The sales require
$50,000 worth of existing inventory. $20,000 of additional
inventory is purchased on credit and applied to the Accounts
Payable.
3. $30,000 is
collected from Accounts Recievable.
4. $35,000 of the
Accounts Payable is due...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...
Last year Miami Rivet had $5 million in operating income (EBIT).
Its depreciation expense was $1 million, its interest expense was
$1 million, and its corporate tax rate was 25%. At year-end, it had
$14 million in operating current assets, $3 million in accounts
payable, $1 million in accruals, $2 million in notes payable, and
$15 million in net plant and equipment. Assume Miami Rivet has no
excess cash. Miami Rivet uses only debt and common equity to fund
its...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...
Last year Miami Rivet had $5 million in operating income (EBIT).
Its depreciation expense was $1 million, its interest expense was
$1 million, and its corporate tax rate was 25%. At year-end, it had
$14 million in operating current assets, $3 million in accounts
payable, $1 million in accruals, $2 million in notes payable, and
$15 million in net plant and equipment. Assume Miami Rivet has no
excess cash. Miami Rivet uses only debt and common equity to fund
its...
1) Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was...
1) Last year Miami Rivet had $5 million in operating income
(EBIT). Its depreciation expense was $1 million, its interest
expense was $1 million, and its corporate tax rate was 25%. At
year-end, it had $14 million in operating current assets, $3
million in accounts payable, $1 million in accruals, $2 million in
notes payable, and $15 million in net plant and equipment. Assume
Miami Rivet has no excess cash. Miami Rivet uses only debt and
common equity to fund...
Last year Charlie Brown had $5 million in operating income (EBIT). It’s depreciation expense was $1...
Last year Charlie Brown had $5 million in operating income
(EBIT). It’s depreciation expense was $1 million, its interest
expense was $1 million, and its corporate tax rate was 40%. At
year-end, it had $14 million in current assets, $3 million in
accounts payable, $1 million in accruals, $2 million in notes
payable, and $15 million in net plant and equipment. Charlie had no
other current liabilities. Assume the Charlie’s only noncash item
was depreciation.
What was the company’s net...
Last year Charlie Brown had $5 million in operating income (EBIT). It’s depreciation expense was $1...
Last year Charlie Brown had $5 million in operating income
(EBIT). It’s depreciation expense was $1 million, its interest
expense was $1 million, and its corporate tax rate was 40%. At
year-end, it had $14 million in current assets, $3 million in
accounts payable, $1 million in accruals, $2 million in notes
payable, and $15 million in net plant and equipment. Charlie had no
other current liabilities. Assume the Charlie’s only noncash item
was depreciation.
What was the company’s net...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...
Last year Miami Rivet had $5 million in operating income (EBIT).
Its depreciation expense was $1 million, its interest expense was
$1 million, and its corporate tax rate was 25%. At year-end, it had
$14 million in operating current assets, $3 million in accounts
payable, $1 million in accruals, $2 million in notes payable, and
$15 million in net plant and equipment. Assume Miami Rivet has no
excess cash. Miami Rivet uses only debt and common equity to fund
its...
Information given: Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense...
Information given:
Last year Miami Rivet had $5 million in operating income (EBIT).
Its depreciation expense was $1 million, its interest expense was
$1 million, and its corporate tax rate was 25%. At year-end, it had
$14 million in operating current assets, $3 million in accounts
payable, $1 million in accruals, $2 million in notes payable, and
$15 million in net plant and equipment. Assume Miami Rivet has no
excess cash. Miami Rivet uses only debt and common equity to...
25.Changes in depreciation expense do not affect operating income because depreciation is a non-cash expense. a....
25.Changes in depreciation expense do not affect operating
income because depreciation is a non-cash expense.
a. True
b. False
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