Question
In: Finance
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation,...
Watson Oil recently reported (in millions) $8,250 of sales,
$5,750 of operating costs other than depreciation, and $850 of
depreciation. The company had $3,200 of outstanding bonds that
carry a 5% interest rate, and its federal-plus-state income tax
rate was 25%. In order to sustain its operations and thus generate
future sales and cash flows, the firm was required to make $1,250
of capital expenditures on new fixed assets and to invest $300 in
net operating working capital. By how much did the firm's net
income exceed its free cash flow? Do not round the intermediate
calculations.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation,...
Watson Oil recently reported (in millions) $8,250 of sales,
$5,750 of operating costs other than depreciation, and $800 of
depreciation. The company had $3,200 of outstanding bonds that
carry a 5% interest rate, and its federal-plus-state income tax
rate was 35%. In order to sustain its operations and thus generate
future sales and cash flows, the firm was required to make $1,250
of capital expenditures on new fixed assets and to invest $300 in
net operating working capital. By how...
AT&T recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and...
AT&T recently reported (in millions) $8,250 of sales,
$5,750 of operating costs other than depreciation, and $1,100 of
depreciation. The company had $3,200 of outstanding bonds that
carry a 5% interest rate, and its federal-plus-state income tax
rate was 35%. In order to sustain its operations and thus generate
future sales and cash flows, the firm was required to make $1,250
of capital expenditures on new fixed assets and to invest $300 in
net operating working capital. By how much...
XYZ Corp recently reported $8,000 of sales, $5,750 of operating costs other than depreciation, and $700...
XYZ Corp recently reported $8,000 of sales, $5,750 of operating
costs other than depreciation, and $700 of depreciation. The
company had no amortization charges, it had $3,000 of outstanding
bonds that carry a 6% interest rate, and its federal-plus-state
income tax rate was 30%. In order to sustain its operations and
thus generate sales and cash flows in the future, the firm was
required to make $1,250 of capital expenditures on new fixed assets
and to invest $300 in net...
Houston Pumps recently reported $172,500 of sales, $140,500 of operating costs other than depreciation, and $9,250 of depreciation.
Houston Pumps recently reported $172,500 of sales, $140,500 of
operating costs other than depreciation, and $9,250 of
depreciation. The company had $35,250 of outstanding bonds that
carry a 6.75% interest rate, and its federal-plus-state income tax
rate was 25%. In order to sustain its operations and thus generate
future sales and cash flows, the firm was required to spend $15,250
to buy new fixed assets and to invest $6,850 in net operating
working capital. What was the firm's free cash...
Shrives Publishing recently reported $11,500 of sales, $5,500 of operating costs other than depreciation, and $1,250...
Shrives Publishing recently reported $11,500 of sales, $5,500 of
operating costs other than depreciation, and $1,250 of
depreciation. The company had $3,500 of bonds that carry a 6.25%
interest rate, and its federal-plus-state income tax rate was 25%.
During the year, the firm had expenditures on fixed assets and net
operating working capital that totaled $1,550. These expenditures
were necessary for it to sustain operations and generate future
sales and cash flows. What was its free cash flow? (Round your...
Shrives Publishing recently reported $11,750 of sales, $5,500 of operating costs other than depreciation, and $1,250...
Shrives Publishing recently reported $11,750 of sales, $5,500 of
operating costs other than depreciation, and $1,250 of
depreciation. The company had $3,500 of bonds that carry a 6.25%
interest rate, and its federal-plus-state income tax rate was 35%.
During the year, the firm had expenditures on fixed assets and net
operating working capital that totaled $1,550. These expenditures
were necessary for it to sustain operations and generate future
sales and cash flows. What was its free cash flow? (Round your...
Boston Inc. recently reported $125,000 of sales, $75,500 of operating costs other than depreciation, and $10,200...
Boston Inc. recently reported $125,000 of sales, $75,500 of
operating costs other than depreciation, and $10,200 of
depreciation. The company had $16,500 of outstanding bonds that
carry a 7.25% interest rate, and its federal-plus-state income tax
rate was 40%. How much was the firm's net income? The firm uses the
same depreciation expense for tax and stockholder reporting
purposes. (Round your intermediate and final answers to two decimal
places.)
Sugar Land Inc. recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and...
Sugar Land Inc. recently reported $15,000 of sales, $7,500 of
operating costs other than depreciation, and $1,200 of
depreciation. The company had no amortization charges, it had
outstanding $6,500 of bonds that carry a 6.25% interest rate, and
its federal-plus-state income tax rate was 35%. How much was the
firm's net income after taxes?
a. $3,284.55
b.$3,457.42
c.$3,639.39
d.$3,830.94
e.$4,022.48
Houston Pumps recently reported $232,500 of sales, $140,500 of operating costs other than depreciation, and $9,250...
Houston Pumps recently reported $232,500 of sales, $140,500 of
operating costs other than depreciation, and $9,250 of
depreciation. The company had $35,250 of outstanding bonds that
carry a 6.75% interest rate, and its federal-plus-state income tax
rate was 35%. In order to sustain its operations and thus generate
future sales and cash flows, the firm was required to spend $15,250
to buy new fixed assets and to invest $6,850 in net operating
working capital. What was the firm's free cash...
Georgia Office Supplies recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and...
Georgia Office Supplies recently reported $12,500 of sales,
$7,250 of operating costs other than depreciation, and $1,250 of
depreciation. The company had no amortization charges and no
non-operating income. It had $8,000 of bonds outstanding that carry
a 7.5% interest rate, and its federal-plus-state income tax rate
was 40%. The firm had 1,000 shares outstanding.
1) How much was the firm's taxable income, or earnings
before taxes (EBT)?
EBT = $12,500 - $7,250 - $1,250 -
(.075 x $8,000) =...
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