In: Finance
The company has realized an operating profit of 5 billion won
this year. Depreciation cost was 500 million won, and interest cost
is 1 billion won. Inventories increased by 1 billion won compared
to the beginning and sales bonds increased by 2 billion won. The
corporate tax rate applied to this company is said to be 40%.
Assume that other conditions are constant and estimate that:
1. Net profit for this year
2. Cash Flows from Changes in Net Driver's Copy
(1 WON = 1, 100 WON = 100. NO CALCULATE FOR DOLLAR PLEASE!)
1.Calculationof Net Profit
Income Statement ( In Million) | |
Particulars | Amount |
Operating Profit(EBIT) | 5000 |
Interest | 1000 |
EBT | 4000 |
Tax@40% | 1600 |
Net Profit | 2400 |
2. Calculation Of Cashflow
Cashflow Statement | |
Particulars | Amount |
Net operating Profit before tax | 5000 |
(+) Depreciation | 500 |
Operating Cashflow before WC Changes | 5500 |
(-) Increase in Inventory | 1000 |
(-) Increase in sales bonds | 2000 |
Operating cashflow before tax | 2500 |
Tax paid | 1600 |
Net cashflow from operating activity | 900 |
Cashflow from Financing Activity | |
Interest Paid | 1000 |
Net cashflow from financing activity | -1000 |
Net Cashflow | -100 |
Note : Sales bonds is vague term hence treated as sales receivable. Alternatively it may be taken as bonds, in that case Operating CAshflow will be 2900 and financing cashflow will be net 1000 consequently net cashflow will be 3900