Question
In: Finance
You are working on your second project as an equity research intern at a bulge investment...
You are working on your second project as an equity research intern at a bulge investment bank. Your focus is in retail space, especially in the health and fitness sector. Currently, you are gathering information on a fast-growing chain fitness company called LuluYoga. You are interested in calculating the free cash flow of the firm. LuluYoga offers yoga classes in several major cities in the United States. Two major revenue resources are selling workout gear and membership passes for class access. Assume at the beginning of year 2016, LuluYoga has zero inventory. In year 2016, LuluYoga purchased 10,000 yoga mats at a price of $10 each. The company sells 6,000 mats at a price of $15 in year 2016 and sells the remaining at a price of $20 in year 2017. In year 2016, LuluYoga sells 1,000 membership passes for $2,000 each. 80% of the classes purchased were used in 2016 and the rest are used in 2017.The yoga master’s compensation to teach classes are $300K in year 2016 and $200K in year 2017. LuluYoga pays corporate tax of 35%.
Q1. What is the change of NOWC in year 2016?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You are an intern with an equity research organization. You have been given the task to...
You are an intern with an equity research organization. You
have been given the task to project the values of certain income
statement and balance sheet items for the next year (FY2020) for
ABC Ltd (Your current time=0 is FY ending 2019). You have collected
information about the historical income statement and balance sheet
items. The historical information is provided in Table 1.
Table 1
PARTICULARS (All values in INR crores)
FY2019
FY2018
FY2017
FY2016
Sales Revenue
21118.00
22084.00
17273.00...
You work at the equity research department of a large investment bank and your task is...
You work at the
equity research department of a large investment bank and your task
is to determine the value of the company Example.com using the WACC
method. You have the following estimates for Example.com’s yearly
financials for the year 2018.
a. Net Income is
£300 million.
b. The corporate tax
rate is 25%.
c. The interest
expense is £100 million. d. Depreciation is £150 million.
e. Capital
expenditure is £200 million.
f.
Net working capital in December 2017 is...
Imagine that you are working as an intern at an advertising agency and the agency just...
Imagine that you are working as an intern at an advertising
agency and the agency just won a new account, a bottled team named
Leafs Alive. The sale of bottled tea is surging, with the industry
reaching $10.5 billion in sales in 2014.
1. What consumer trends seem to be driving this product
development?
2. Develop a demographic profile of consumers you think are most
likely to purchase this product.
You are an intern, working with the statistical expert tasked with completing the study for the...
You are an intern, working with the statistical expert tasked
with completing the study for the bank. She is interested in your
thoughts on the project, and has asked you to write up your answers
to the following questions, devoting a short paragraph to each
question.
Identify the sampling method (Cluster, Simple Random Sample,
Stratified Random Sample, Convenience, etc.) that would best ensure
that your sample would reflect the overall population of branch
customers. Briefly explain your reasoning.
If the...
You are working on a research project and you are looking to collect VO2max measures on...
You are working on a research project and you are looking to
collect VO2max measures on obese adults (categorized as such based
on weight and BMI). Which method/GXT would you choose to assess CRF
and why? Be detailed and specific when explaining/defending your
choice
You are working on a research project and you are looking to collect VO2max measures on...
You are working on a research project and you are looking to
collect VO2max measures on obese adults (categorized as such based
on weight and BMI). Which method/GXT would you choose to assess CRF
and why? Be detailed and specific when explaining/defending your
choice
As the summer intern for a company that manufactures nozzles for garden hoses, you are working...
As the summer intern for a company that manufactures nozzles for
garden hoses, you are working on a project involving adjustable
hose nozzles. Your design calls for a rotating head that has a
number of cylindrical plugs that can be inserted into the hose
opening. On a particular setting, the speed of the water passing
around the plug is 7 times as large as the speed of the water in
the hose. Determine the ratio of the plug radius (rplug)...
Part I – The Tour You are an intern working in the Atlanta, GA office of...
Part I – The Tour
You are an intern working in the Atlanta, GA office of Dr.
Priya Wayne, MD. Dr. Wayne is a specialist in rare neuromuscular
and musculoskeletal disorders. You’ve been working with Dr. Wayne
for the last year and due to this experience you’ve gained a great
deal of knowledge about the human body and muscle physiology.
You’re also a college student and working with Dr. Wayne has
allowed you to gain first-hand experience with some of...
As a recently hired MBA intern, you are working in a consulting capacity to provide an...
As a recently hired MBA intern, you are working in a consulting
capacity to provide an analysis for Al Dente's Italian Restaurant.
A financial income Statement is presented below:
Sales $4,640,560
Cost of sales (all variable) $2,679,008
Gross Margin $1,961,553 Operating expenses:
Variable $478,117
Fixed $367,521
Total operating expenses: $845,638
Administative expenses (all fixed) $970,725
Net operating income $145,190
This income statement presents the sales, expenses and pre-tax
operating income for a local eating facility. At Al Dente, the
average...
Suppose you are about to start working for Apple Corp. as an intern, so you do some research on the various job positions within the company.
Suppose you are about to start working for Apple Corp. as an intern, so you do some research on the various job positions within the company. In your area of work, there are 4 basic positions that you can hold: intern, programmer, analyst, and project manager.
Each year there is a chance for promotion, and there is also a chance of “involuntary separation” from the company. (In other words, getting fired.)
If you are an intern, there is a...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- More and more adults are considering commuting to work by bicycle rather than car, but few...
- Please answer these questions Data Processing and Analysis using python. Thank you In statistics, an outlier...
- Write a function file that accepts each of the four vectors as inputs. The function file...
- Kant says that to act morally is to act out of duty. How does this differ...
- Suppose you are trying to determine the capacity (in gallons) of the gas tank needed on...
- List the arithmetic operators used in BASIC and state their priorities of execution in a statement....
- Describe the espoused values of a company you have worked for (or been exposed to -...
ADVERTISEMENT