Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 3,105.0 | $ | 2,700.0 |
| Operating costs excluding depreciation and amortization | 2,562.0 | 2,295.0 | ||
| EBITDA | $ | 543.0 | $ | 405.0 |
| Depreciation and amortization | 81.0 | 65.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 462.0 | $ | 340.0 |
| Interest | 68.3 | 59.4 | ||
| Earnings before taxes (EBT) | $ | 393.7 | $ | 280.6 |
| Taxes (25%) | 157.5 | 112.2 | ||
| Net income | $ | 236.2 | $ | 168.4 |
| Common dividends | $ | 212.6 | $ | 134.7 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 49.0 | $ | 38.0 |
| Accounts receivable | 405.0 | 324.0 | ||
| Inventories | 564.0 | 513.0 | ||
| Total current assets | $ | 1,018.0 | $ | 875.0 |
| Net plant and equipment | 810.0 | 648.0 | ||
| Total assets | $ | 1,828.0 | $ | 1,523.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 324.0 | $ | 270.0 |
| Accruals | 238.0 | 216.0 | ||
| Notes payable | 62.1 | 54.0 | ||
| Total current liabilities | $ | 624.1 | $ | 540.0 |
| Long-term bonds | 621.0 | 540.0 | ||
| Total liabilities | $ | 1,245.1 | $ | 1,080.0 |
| Common stock | 508.7 | 392.4 | ||
| Retained earnings | 74.2 | 50.6 | ||
| Common equity | $ | 582.9 | $ | 443.0 |
| Total liabilities and equity | $ | 1,828.0 | $ | 1,523.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
In: Finance
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 3,480.0 | $ | 2,900.0 |
| Operating costs excluding depreciation and amortization | 2,871.0 | 2,465.0 | ||
| EBITDA | $ | 609.0 | $ | 435.0 |
| Depreciation and amortization | 109.0 | 84.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 500.0 | $ | 351.0 |
| Interest | 76.6 | 63.8 | ||
| Earnings before taxes (EBT) | $ | 423.4 | $ | 287.2 |
| Taxes (25%) | 169.4 | 114.9 | ||
| Net income | $ | 254.0 | $ | 172.3 |
| Common dividends | $ | 228.6 | $ | 137.8 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 40.0 | $ | 32.0 |
| Accounts receivable | 348.0 | 290.0 | ||
| Inventories | 798.0 | 638.0 | ||
| Total current assets | $ | 1,186.0 | $ | 960.0 |
| Net plant and equipment | 1,093.0 | 841.0 | ||
| Total assets | $ | 2,279.0 | $ | 1,801.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 302.0 | $ | 232.0 |
| Accruals | 267.0 | 232.0 | ||
| Notes payable | 69.6 | 58.0 | ||
| Total current liabilities | $ | 638.6 | $ | 522.0 |
| Long-term bonds | 696.0 | 580.0 | ||
| Total liabilities | $ | 1,334.6 | $ | 1,102.0 |
| Common stock | 867.2 | 647.2 | ||
| Retained earnings | 77.2 | 51.8 | ||
| Common equity | $ | 944.4 | $ | 699.0 |
| Total liabilities and equity | $ | 2,279.0 | $ | 1,801.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
-Select-IIIIIIIVV
In: Finance
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 2,420.0 | $ | 2,200.0 |
| Operating costs excluding depreciation and amortization | 1,997.0 | 1,870.0 | ||
| EBITDA | $ | 423.0 | $ | 330.0 |
| Depreciation and amortization | 48.0 | 44.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 375.0 | $ | 286.0 |
| Interest | 53.2 | 48.4 | ||
| Earnings before taxes (EBT) | $ | 321.8 | $ | 237.6 |
| Taxes (25%) | 128.7 | 95.0 | ||
| Net income | $ | 193.1 | $ | 142.6 |
| Common dividends | $ | 173.8 | $ | 114.1 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 32.0 | $ | 29.0 |
| Accounts receivable | 354.0 | 308.0 | ||
| Inventories | 660.0 | 528.0 | ||
| Total current assets | $ | 1,046.0 | $ | 865.0 |
| Net plant and equipment | 484.0 | 440.0 | ||
| Total assets | $ | 1,530.0 | $ | 1,305.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 177.0 | $ | 154.0 |
| Accruals | 193.0 | 154.0 | ||
| Notes payable | 48.4 | 44.0 | ||
| Total current liabilities | $ | 418.4 | $ | 352.0 |
| Long-term bonds | 484.0 | 440.0 | ||
| Total liabilities | $ | 902.4 | $ | 792.0 |
| Common stock | 565.5 | 470.2 | ||
| Retained earnings | 62.1 | 42.8 | ||
| Common equity | $ | 627.6 | $ | 513.0 |
| Total liabilities and equity | $ | 1,530.0 | $ | 1,305.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
In: Finance
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 1,440.0 | $ | 1,200.0 |
| Operating costs excluding depreciation and amortization | 1,116.0 | 1,020.0 | ||
| EBITDA | $ | 324.0 | $ | 180.0 |
| Depreciation and amortization | 42.0 | 32.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 282.0 | $ | 148.0 |
| Interest | 31.7 | 26.4 | ||
| Earnings before taxes (EBT) | $ | 250.3 | $ | 121.6 |
| Taxes (25%) | 100.1 | 48.6 | ||
| Net income | $ | 150.2 | $ | 73.0 |
| Common dividends | $ | 135.2 | $ | 58.4 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 15.0 | $ | 13.0 |
| Accounts receivable | 179.0 | 156.0 | ||
| Inventories | 251.0 | 228.0 | ||
| Total current assets | $ | 445.0 | $ | 397.0 |
| Net plant and equipment | 421.0 | 324.0 | ||
| Total assets | $ | 866.0 | $ | 721.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 120.0 | $ | 96.0 |
| Accruals | 110.0 | 96.0 | ||
| Notes payable | 28.8 | 24.0 | ||
| Total current liabilities | $ | 258.8 | $ | 216.0 |
| Long-term bonds | 288.0 | 240.0 | ||
| Total liabilities | $ | 546.8 | $ | 456.0 |
| Common stock | 282.3 | 243.1 | ||
| Retained earnings | 36.9 | 21.9 | ||
| Common equity | $ | 319.2 | $ | 265.0 |
| Total liabilities and equity | $ | 866.0 | $ | 721.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
-Select-IIIIIIIVV
In: Finance
|
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
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In: Finance
| eBook
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
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In: Finance
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 3,240.0 | $ | 2,700.0 |
| Operating costs excluding depreciation and amortization | 2,430.0 | 2,295.0 | ||
| EBITDA | $ | 810.0 | $ | 405.0 |
| Depreciation and amortization | 71.0 | 62.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 739.0 | $ | 343.0 |
| Interest | 71.3 | 59.4 | ||
| Earnings before taxes (EBT) | $ | 667.7 | $ | 283.6 |
| Taxes (25%) | 267.1 | 113.4 | ||
| Net income | $ | 400.6 | $ | 170.2 |
| Common dividends | $ | 360.5 | $ | 136.2 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 40.0 | $ | 35.0 |
| Accounts receivable | 311.0 | 270.0 | ||
| Inventories | 776.0 | 621.0 | ||
| Total current assets | $ | 1,127.0 | $ | 926.0 |
| Net plant and equipment | 714.0 | 621.0 | ||
| Total assets | $ | 1,841.0 | $ | 1,547.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 248.0 | $ | 216.0 |
| Accruals | 203.0 | 162.0 | ||
| Notes payable | 64.8 | 54.0 | ||
| Total current liabilities | $ | 515.8 | $ | 432.0 |
| Long-term bonds | 648.0 | 540.0 | ||
| Total liabilities | $ | 1,163.8 | $ | 972.0 |
| Common stock | 586.1 | 524.0 | ||
| Retained earnings | 91.1 | 51.0 | ||
| Common equity | $ | 677.2 | $ | 575.0 |
| Total liabilities and equity | $ | 1,841.0 | $ | 1,547.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
-Select-IIIIIIIVV
In: Accounting
Problem 21-5 Statement of cash flows; direct method [LO21-3, 21-8]
Comparative balance sheets for 2018 and 2017 and a statement of
income for 2018 are given below for Metagrobolize Industries.
Additional information from the accounting records of Metagrobolize
also is provided.
| METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) |
||||||||
| 2018 | 2017 | |||||||
| Assets | ||||||||
| Cash | $ | 400 | $ | 205 | ||||
| Accounts receivable | 390 | 210 | ||||||
| Inventory | 540 | 360 | ||||||
| Land | 550 | 515 | ||||||
| Building | 900 | 900 | ||||||
| Less: Accumulated depreciation | (300 | ) | (270) | |||||
| Equipment | 2,600 | 2,270 | ||||||
| Less: Accumulated depreciation | (367 | ) | (340 | ) | ||||
| Patent | 1,200 | 1,450 | ||||||
| $ | 5,913 | $ | 5,300 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 640 | $ | 390 | ||||
| Accrued expenses payable | 170 | 130 | ||||||
| Lease liability—land | 130 | 0 | ||||||
| Shareholders' Equity | ||||||||
| Common stock | 3,140 | 3,000 | ||||||
| Paid-in capital—excess of par | 750 | 730 | ||||||
| Retained earnings | 1,083 | 1,050 | ||||||
| $ | 5,913 | $ | 5,300 | |||||
| METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 000s) |
||||||
| Revenues | ||||||
| Sales revenue | $ | 2,489 | ||||
| Gain on sale of land | 40 | $ | 2,529 | |||
| Expenses | ||||||
| Cost of goods sold | $ | 840 | ||||
| Depreciation expense—building | 30 | |||||
| Depreciation expense—equipment | 216 | |||||
| Loss on sale of equipment | 15 | |||||
| Amortization of patent | 250 | |||||
| Operating expenses | 550 | 1,901 | ||||
| Net income | $ | 628 | ||||
Additional information from the accounting records:
Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.
During 2018, equipment with a cost of $210,000 (90% depreciated) was sold.
The statement of shareholders' equity reveals reductions of $160,000 and $435,000 for stock dividends and cash dividends, respectively.
Required:
Prepare the statement of cash flows of Metagrobolize for the year
ended December 31, 2018. Present cash flows from operating
activities by the direct method. (Enter your answers in thousands
(i.e., 5,000 should be entered as 5). Amounts to be deducted should
be indicated with a minus sign.)
METAGROBOLIZE INDUSTRIES
Statement of Cash Flows
For year ended December 31, 2018
($ in 000s)
Cash inflows:
Cash outflows:
Noncash investing
and financing activities:
In: Accounting
Windsor Company was incorporated on January 2, 2018, but was unable to begin manufacturing activities until July 1, 2018, because new factory facilities were not completed until that date.
The Land and Buildings account reported the following items during 2018.
January 31 Land and building $165,900
February 28 Cost of removal of building 9,973
May 1 Partial payment of new construction 63,430
May 1 Legal fees paid 4,630
June 1 Second payment on new construction 48,600
June 1 Insurance premium 2,280
June 1 Special tax assessment 4,310
June 30 General expenses 36,249
July 1 Final payment on new construction 30,570
December 31 Asset write-up 56,497
Total 422,439
December 31 Depreciation-2018 at 1% (3,613 )
December 31, 2018 Account balance $418,826
The following additional information is to be considered.
1. To acquire land and building, the company paid $85,900 cash and 800 shares of its 8% cumulative preferred stock, par value $100 per share. Fair value of the stock is $106 per share.
2. Cost of removal of old buildings amounted to $9,973, and the demolition company retained all materials of the building. 3. Legal fees covered the following.
Cost of organization $710
Examination of title covering purchase of land 1,450
Legal work in connection with construction contract 2,470
Total $4,630
4. Insurance premium covered the building for a 2-year term beginning May 1, 2018.
5. The special tax assessment covered street improvements that are permanent in nature.
6. General expenses covered the following for the period from January 2, 2018, to June 30, 2018.
President’s salary $32,162
Plant superintendent’s salary-supervision of new building 4,087 $36,249
7. Because of a general increase in construction costs after entering into the building contract, the board of directors increased the value of the building $56,497, believing that such an increase was justified to reflect the current market at the time the building was completed. Retained earnings was credited for this amount.
8. Estimated life of building-50 years. Depreciation for 2018-1% of asset value (1% of $361,300, or $3,613).
In: Accounting
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 1,320.0 | $ | 1,100.0 |
| Operating costs excluding depreciation and amortization | 990.0 | 935.0 | ||
| EBITDA | $ | 330.0 | $ | 165.0 |
| Depreciation and amortization | 36.0 | 33.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 294.0 | $ | 132.0 |
| Interest | 29.0 | 24.2 | ||
| Earnings before taxes (EBT) | $ | 265.0 | $ | 107.8 |
| Taxes (25%) | 106.0 | 43.1 | ||
| Net income | $ | 159.0 | $ | 64.7 |
| Common dividends | $ | 143.1 | $ | 51.8 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 15.0 | $ | 13.0 |
| Accounts receivable | 190.0 | 165.0 | ||
| Inventories | 277.0 | 231.0 | ||
| Total current assets | $ | 482.0 | $ | 409.0 |
| Net plant and equipment | 363.0 | 330.0 | ||
| Total assets | $ | 845.0 | $ | 739.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 138.0 | $ | 110.0 |
| Accruals | 83.0 | 66.0 | ||
| Notes payable | 26.4 | 22.0 | ||
| Total current liabilities | $ | 247.4 | $ | 198.0 |
| Long-term bonds | 264.0 | 220.0 | ||
| Total liabilities | $ | 511.4 | $ | 418.0 |
| Common stock | 298.3 | 301.6 | ||
| Retained earnings | 35.3 | 19.4 | ||
| Common equity | $ | 333.6 | $ | 321.0 |
| Total liabilities and equity | $ | 845.0 | $ | 739.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
-Select-IIIIIIIVVItem 4
In: Finance