Nabors Inc. 2009 Income Statement ($ in millions) Bet Sales $9,610 Less: Cost of Goods Sold...

Nabors Inc. 2009 Income Statement ($ in millions)
Bet Sales	$9,610
Less: Cost of Goods Sold	6,310
Less Depreciation	1,370
Earnings before interest and taxes	1,930
Less: Interest paid	630
Taxable income	$1,300
Less taxes	455
Net Income	$ 845

Nabors Inc. 2008 and 2009 Balance sheets ($ in millions)
	2008	2009		2008	2009
Cash	$310	$405	Accounts Pay	$2720	$2570
Accounts Rec.	2640	3055	Notes Pay	100	0
Inventory	3275	3850	Total	$2820	$2570
Total	$6225	$7310	Long Term Debt	7875	8100
Net Fixed Assets	10960	10670	Common stock	5000	5250
			Retained Earn	1490	2060
Total Assets	$17,185	$17,980	Total Liab & Equ	$17,185	$17,980

1. What is the amount of the noncash expenses for 2009?

A. $570

B. $630

C. $845

D. $1,370

E. $2,000

2. What is the change in the net working capital from 2008 to 2009?

A. $1,235

B. $1,035

C. $1,305

D. $1,335

E. $1535

3. What is the operating cash flow for 2009?

A. $845

B. $1,930

C. $2,215

D. $2,845

E. $3,060

4. What is the amount of the net capital spending for 2009?

A. -$290

B. $795

C. $1,080

D. $1,660

E. $2,165

Solutions

Expert Solution

1.)	Amount of Non Cash Expense	$ 1,370
	( i.e. Depreciation Expense )

	Correct answer is option D .

2.)	2008 Working Capital	3,405	=6225-2820

	2009 Working Capital	4,740	=7310-2570

	Change in Net Working Capital	$ 1,335	=4740-3405

	Correct answer is option D .

3.)	Net Income	845
	Add: Depreciation	1,370
	Less: Increase in accounts Rec.	-415	=2640-3055
	Less: Increase in Inventory	-575	=3275-3850
	Less :Decrease in accounts pay	-150	=2570-2720
	Less: Decrease in Notes Payable	-100	=0-100
	Operating cash flow for 2009	$ 975


4.)	Amount of the net capital spending for 2009	$ 1,080	=10670-(10960-1370)

	Correct answer is option C .

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 8,700 Cost of goods sold...

Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 8,700 Cost of goods sold 7,340 Depreciation 405 Earnings before interest and taxes $ 955 Interest paid 82 Taxable income $ 873 Taxes 306 Net income $ 567 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 150 $ 185 Accounts payable $ 1,180 $ 1,260 Accounts rec. 920 730 Long-term debt 1,000 1,265 Inventory 1,520 1,550 Common stock 3,210 2,900...

Bayside Inc. 2005 Income Statement ($ in thousands) Net sales $5,680 Less: Cost of goods sold...

Bayside Inc. 2005 Income Statement ($ in thousands) Net sales $5,680 Less: Cost of goods sold 4,060 Less: Depreciation 420 Earnings before interest and taxes 1,200 Less: Interest paid 30 Taxable Income $1,170 Less: Taxes 410 Net income $ 760 Bayside, Inc. 2004 and 2005 Balance Sheets ($ in thousands) 2004 2005 2004 2005 Cash $ 70 $ 180 Accounts payable $1,350 $1,170 Accounts rec. 980 840 Long-term debt 720 500 Inventory 1,560 1,990 Common stock 3,200 3,500 Total $2,610...

2009 2010 Sales ($ millions) 1000 1112 Cost of Goods Sold ($ millions) 500 556 Other...

2009 2010 Sales ($ millions) 1000 1112 Cost of Goods Sold ($ millions) 500 556 Other Expenses ($ millions) 100 111 Depreciation ($ millions) 100 100 Interest Expense ($ millions) 50 55 Total Current Assets ($ millions) 600 700 Total Fixed Assets ($ millions) 2200 2500 Accumulated Depreciation ($ millions) 400 This can be determined from the information given Net Fixed Assets ($ millions) 1800 2000 Total Current Liabilities ($ millions) 450 550 Long-term Liabilities ($ millions) 900 975 Common...

Flamingo, Inc. 2019 statement of comprehensive income ($ in millions) Net sales $1,384 Less: Cost of...

Flamingo, Inc. 2019 statement of comprehensive income ($ in millions) Net sales $1,384 Less: Cost of goods sold 605 Less: Depreciation 180 Earnings before interest and taxes 599 Less: Interest paid 80 Taxable income 519 Less: Taxes 156 Net income $363 Addition to retained earnings $254 Dividends paid 109 Flamingo, Inc. 2018 and 2019 Statement of financial positions ($ in millions) 2018 2019 2018 2019 Cash $100 $121 Accounts payable $400 $350 Accounts rec. 350 425 Notes payable 390 370...

Flamingo, Inc. 2019 statement of comprehensive income ($ in millions) Net sales $1,384 Less: Cost of...

Flamingo, Inc. 2019 statement of comprehensive income ($ in millions) Net sales $1,384 Less: Cost of goods sold 605 Less: Depreciation 180 Earnings before interest and taxes 599 Less: Interest paid 80 Taxable income 519 Less: Taxes 156 Net income $363 Addition to retained earnings $254 Dividends paid 109 Unit 2 Exercise Questions Flamingo, Inc. 2018 and 2019 Statement of financial positions ($ in millions) 2018 2019 2018 2019 Cash $100 $121 Accounts payable $400 $350 Accounts rec. 350 425...

Phillipe Corporation 2015 Income Statement In Millions of Dolars Sales 4053 Cost of Goods Sold 2780...

Phillipe Corporation 2015 Income Statement In Millions of Dolars Sales 4053 Cost of Goods Sold 2780 Depreciation 550 Earnings Before Interest and Taxes 723 Interest Paid 502 Taxable Income 221 Taxes (34%) 75 Net Income 146 Dividends 47 Addition to Retained Earnings 99 Philippe Corporation 2014 and 2015 Balance Sheets In Millions of Dollars 2014 2015 Assets Current Assets Cash 210 215 Accounts Receivable 355 310 Inventory 507 328 Total 1072 853 Fixed Assets Net Plant and Equipment 6085 6527...

Bayside, Inc. 2017 Income Statement ($ in thousands) Net sales $ 6,170 Cost of goods sold...

Bayside, Inc. 2017 Income Statement ($ in thousands) Net sales $ 6,170 Cost of goods sold 4,590 Depreciation 395 Earnings before interest and taxes $ 1,185 Interest paid 44 Taxable income $ 1,141 Taxes 399 Net income $ 742 Bayside, Inc. 2016 and 2017 Balance Sheets ($ in thousands) 2016 2017 2016 2017 Cash $ 145 $ 250 Accounts payable $ 1,710 $ 1,770 Accounts rec. 1,130 970 Long-term debt 880 680 Inventory 1,805 2,130 Common stock 3,380 3,350...

OPQ, Inc. 2018 statement of comprehensive income Net sales $8,953 Cost of goods sold $5,865 Depreciation...

OPQ, Inc. 2018 statement of comprehensive income Net sales $8,953 Cost of goods sold $5,865 Depreciation $? EBIT $? Interest paid $675 Earnings before taxes $675 Taxes $400 Net income $705 Dividends paid $? Addition to retained earnings $450 OPQ, Inc. Statement of financial positions as of December 31, 2017 and 2018 2017 2018 2017 2018 Cash $725 $1,135 Accounts payable $859 $1,031 Accounts rec. $2,330 $? Notes payable $? $4,020 Inventory $3,240 $5, 202 Current liabilities $? $? Current...

Major Manuscripts, Inc. 2012 Income Statement Net sales $ 8,600 Cost of goods sold 7,550 Depreciation...

Major Manuscripts, Inc. 2012 Income Statement Net sales $ 8,600 Cost of goods sold 7,550 Depreciation 310 Earnings before interest and taxes $ 740 Interest paid 40 Taxable Income $ 700 Taxes 280 Net income $ 420 Dividends $ 194 Major Manuscripts, Inc. 2012 Balance Sheet 2012 2012 Cash $ 2,420 Accounts payable $ 2,320 Accounts rec. 960 Long-term debt 280 Inventory 2,800 Common stock $ 2,400 Total $ 6,180 Retained earnings 4,580 Net fixed assets 3,400 Total assets $...

The 2018 income statement of Adrian Express reports sales of $15,015,000, cost of goods sold of...

The 2018 income statement of Adrian Express reports sales of $15,015,000, cost of goods sold of $8,863,500, and net income of $1,570,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Current assets: Cash $ 570,000 $ 730,000 Accounts receivable 1,340,000 970,000 Inventory 1,740,000 1,370,000 Long-term assets 4,770,000 4,210,000 Total assets $ 8,420,000 $ 7,280,000 Liabilities and Stockholders' Equity Current liabilities $ 1,990,000 $ 1,630,000...

Subjects