Question

In: Finance

Balance Sheet For LMN Corporation Year ended: 2019 2018 Assets Cash and equivalents $320 $295 Accounts...

Balance Sheet For LMN Corporation
Year ended:	2019	2018
Assets
Cash and equivalents	$320	$295
Accounts receivable	750	660
Inventories	560	480
Total current assets	1,630	1,435
Gross fixed assets	3,275	2,700
Accumulated depreciation	(1,200)	(900)
Net fixed assets	2,075	1,800
Total assets	$3,705	$3,235

Liabilities and shareholders’ equity
Accounts payable	$390	$370
Notes payable	250	240
Accrued taxes and expenses	180	140
Total current liabilities	820	750
Long-term debt	1,200	1,108
Total long-term debt	1,200	1,108
Common stock	505	505
Additional paid-in capital	302	302
Retained earnings	878	570
Total shareholders' equity	1,685	1,377
Total liabilities and shareholders' equity	$3,705	$3,235

Income Statement
Year ended:	2019
Total revenues	$4,420
Operating costs and expenses	3,250
EBITDA	1,170
Depreciation expense	300
Operating income (EBIT)	870
Interest expense	90
Income before tax	780
Taxes (at 40 percent)	312
Net income	468
Dividends	160
Change in retained earnings	$308

Calculate free cash flow to the firm (FCFF) for the LMN Corporation.

$83
$137
$145
$177

2. Calculate free cash flow to equity (FCFE) for the LMN Corporation.

$83
$137
$168
$185

3. Calculate cash provided by operating activities for the LMN Corporation.

$458
$598
$658
$708

4. Calculate cash provided by financing activities for the LMN Corporation.

-$58
-$68
-$108
-$160

Expert Solution

1. Free cashflow to the firm (FCFF)=(EBIT*(1-taxes))+depreciation- Capex- changes in net working capital

EBIT*(1-taxes)=870*(1-40%)=$522

depreciation=$300

capex=2019 capex-2018 capex+depreciaion=2075-1800+300=$575

cahnges in net working capital=(2018 accounts receivables-2019 accounts receivables)+(2018 inventory-2019 inventory)+(2019 accounts payable-2018 accounts payable)+(2019 accrued taxes&expenses -2018 accrued taxes & expenses)=(660-750)+(480-560)+(390-370)+(180-140)=-110

FCFF=$522+300-$575-$110

FCFF=$137

option b is correct

2. Free cash flow to the equity= Net Income+depreciation-capex-changes in working capital+net borrowing

net borrowing= Increase in the accounts payable+increase in the long term debt=$10+$92=$102

Net Income=$468

FCFE=$468+$300-$575-$110+$102

FCFE=$185

option d is correct

3. Cashflow from Operating activities=Net Income +depreciation-changes in working capital

CFO=$468+$300-$110=$658

Option c is correct

4. Cash flow from financing activities=Increase in the accounts payable+increase in the long term debt-dividends paid

CFF=$10+$92-$160

=-$58

Option a is correct

jeff jeffy answered 1 year ago

Assets 2019 2018 Amount Cash & equivalents $20,000.00 Cash & equivalents $10,000.00 Accounts Receivable $15,000.00 Accounts...

Assets 2019 2018 Amount Cash & equivalents $20,000.00 Cash & equivalents $10,000.00 Accounts Receivable $15,000.00 Accounts Receivable $25,000.00 Inventory $10,000.00 Inventory $15,000.00 Total current assets $45,000.00 Total current assets $50,000.00 Net Plant and equipment $50,000.00 Net Plant and equipment $60,000.00 Total assets $95,000.00 Total assets $110,000.00 Liabilities and equity Liabilities and equity Accounts payable $5,000.00 Accounts payable $7,000.00 Accruals $2,000.00 Accruals $3,000.00 Notes payable $10,000.00 Notes payable $5,000.00 Total current liabilities $17,000.00 Total current liabilities $15,000.00 Long term debts $25,000.00...

2019 2018 Net Sales $ 3,749.9 $ 3,917.2 Consolidated Balance Sheet 2019 2018 Cash and Cash equivalents $ &nbs

2019 2018 Net Sales $ 3,749.9 $ 3,917.2 Consolidated Balance Sheet 2019 2018 Cash and Cash equivalents $ 281.9 $ 253.2 Trade receivables, net of allowance $7.2 and $9.3, $ 450.8 $ 448.7 at 12/31/19 & 12/31/18 respectively Other receivables, net $ 35.8 $ 71.5 Total receivables, net $ 486.6 $ 520.2 Inventories Finished goods $ 255.7 $ 242.8 Work in progress $ 52.6 $ 42.6 Raw materials & supplies $ 245.1 $ 241.8 LIFO reserve $ (33.8) $ (22.6) Total inventories, net $ 519.6 $ 504.6 Prepaid expenses and other current assets $ 36.8 $ 33.2 Total current assets $ 1,324.9 $ 1,311.2...

Balance Sheets Assets 2019 2018 Cash and equivalents $100 $85 Accounts receivable 275 300 Inventories 375 ...

Balance Sheets Assets 2019 2018 Cash and equivalents $100 $85 Accounts receivable 275 300 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,300 1,490 Total assets $3,050 $2,125 Liabilities and Equity Accounts payable $150 $85 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Total liabilities 825 500 Common stock 1,225 1,225 Retained earnings 1,000 400 Common equity 2,225 1,625 Total liabilities and equity $3,050 $2,125 Income Statements 2019...

Balance Sheets (in millions of dollars) 2020 2019 Assets Cash and cash equivalents $600 $495 Accounts...

Balance Sheets (in millions of dollars) 2020 2019 Assets Cash and cash equivalents $600 $495 Accounts receivable $626 $525 Inventories $285 $240 Total current assets $1,511 $1,260 Net fixed assets $1,590 $1,470 Total assets $3,101 $2,730 Liabilities and equity Accounts payable $248 $195 Accruals $195 $180 Notes payable $189 $195 Total current liabilities $632 $570 Long-term debt $356 $300 Total liabilities $987 $870 Common stock $570 $570 Retained Earnings $1,544 $1,290 Total common equity $2,114 $1,860 Total liabilities and equity...

BALANCE SHEET ASSETS LIABILITY AND EQUITY CASH 23 ACCOUNTS PAYABLE 1,245 CASH EQUIVALENTS 435...

BALANCE SHEET ASSETS LIABILITY AND EQUITY CASH 23 ACCOUNTS PAYABLE 1,245 CASH EQUIVALENTS 435 ACCRUED EXPENSES 1,549 ACCOUNTS RECEIVABLE 1,827 DEFFERED TAX LIABILITY 712 INVENTORY 2,876 PROPERTY,PLANT, EQUIP 3,567 LONG-TERM DEBT 3,678 TOTAL ASSESTS 8,728 PREFFERED STOCK 432 COMMON EQUITY 1,112 LIABILITIES AND EQUITY $8,728 INCOME STATEMENT REVENUES 7,493 OPERATING EXPENSES 6,321 INTEREST EXPENSE 221 INCOME BEFORE TAX 951 INCOME TAX 295 NET INCOME 656 PREFFERED DIVIDENDS 26 NET INCOME AVAILABLE TO COMMON 630 Reformulate the following balance...

Balance Sheet For the Year Ended December 31 Assets Current assets: Cash $7,170 Accounts payable 7,500...

Balance Sheet For the Year Ended December 31 Assets Current assets: Cash $7,170 Accounts payable 7,500 Supplies 2,590 Prepaid insurance 800 Land 24,000 Total current assets $42,060 Property, plant, and equipment: Building $43,700 Equipment 29,250 Total property, plant, and equipment 72,950 Total assets $131,510 Liabilities Current liabilities: Accounts receivable $10,000 Accum. depr.-building 12,525 Accum. depr.-equipment 7,340 Net income 11,500 Total liabilities $41,365 Owner's Equity Wages payable $1,500 Mark Brock, capital 88,645 Total owner's equity 90,145 Total liabilities and owner's equity...

The draft accounts for the year ended 30 June 2019 and a balance sheet as at...

The draft accounts for the year ended 30 June 2019 and a balance sheet as at that date for W. Willow are submitted to you. Towards the end of the financial year, her accountant resigned and she had completed the records herself. She thinks that errors have occurred and asks for your help. An examination of the accounting records reveals the following. W. Willow is registered for GST. Required: (a) Show the journal entries required to make the necessary adjustments....

Devin E Corporation Balance Sheet As of December 31, 2015 2014 Assets: Cash & Cash Equivalents...

Devin E Corporation Balance Sheet As of December 31, 2015 2014 Assets: Cash & Cash Equivalents $41,900 $25,000 Accounts Receivable 24,000 6,250 Inventory 30,000 36,000 Current Assets 95,900 67,250 Land 25,000 10,000 Equipment 42,000 38,500 Less: Accumulated Depreciation (14,000) (7,000) 53,000 41,500 Total Assets 148,900 108,750 Liabilities: Accounts Payable 17,500 22,500 Accrued Salaries Payable 5,500 8,000 Rent Expense Payable 2,200 1,000 Income Tax Payable 6,900 4,000 Current Liabilities 32,100 35,500 Long-term notes payable 50,000 30,000 Total Liabilities 82,100 65,500...

Balance Sheet As of December 31,2016 Assets Cash and equivalents 295,500 Accounts receivable 875,000 Inventory 437,500...

Balance Sheet As of December 31,2016 Assets Cash and equivalents 295,500 Accounts receivable 875,000 Inventory 437,500 Total Current Assets 1,608,000 Plant and equipment 475,000 Accumulated depreciation (234,550) Net Fixed Assets 240,450 Total Assets 1,848,450 Liabilities and Owner’s Equity Accounts payable 306,250 Short-term notes payable 88,185 Other current liabilities 18,200 Total Current Liabilities 412,635 Long-term debt 495,800 Total Liabilities 908,435 Common Stock 700,000 Retained earnings 240,015 Total Shareholder’s Equity 940,015 Total Liabilities and Owner’s Equity 1,848,450ZHIAO-WAY Inc. Income Statement For the...

NYZ Corporation had the following Balance Sheet December 31, 2018 ASSETS Cash. $50,000 Accounts Receivable 80,000...

NYZ Corporation had the following Balance Sheet December 31, 2018 ASSETS Cash. $50,000 Accounts Receivable 80,000 Inventory 70,000 Total Current Assets 150,000 Property, Plant and Equipment (net) 200,00 Long Term Investments 50,000 Goodwill 100,000 Total Assets $500,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable $130,000 Accrued Expenses $120,000 Total Current Liabilities $250,000 Long-Term debt $150,000 Stockholders' Equity common stock 10,000 Paid-In Capital 40,000 Retained Earnings 50,000 Total Liabilities & Stockholders' Equity $500,000 ALL REQUIRED ABC Company is thinking about purchasing...