You are given the below data for a company. Using this data, calculate: a. Operating cash flow using the indirect method (show components with calculations for partial credit) b. Cash from Investing Activities (show calculations) c. Cash from Financing Activities (show components with calculations for partial credit) d. Tax Rate e. Free cash flow to firm (show components with calculations for partial credit) AND interpret what it means. f. Free cash flow to equity (show components with calculations for partial credit) AND interpret what it means.
| Income statement 2020 | |||
| Sales | 70,000.00 | ||
| COGS | – 50,000.00 | ||
| Depreciation expense | – 1,200.00 | ||
| Sales, General, Admin expense | – 5,000.00 | ||
| R&D Expense | – 350.00 | ||
| Wages and salary expense | – 1,000.00 | ||
| Other operating expenses | – 300.00 | ||
| EBIT | 12,150.00 | ||
| Interest expense | – 1,200.00 | ||
| EBT | 10,950.00 | ||
| Income tax expense | 2,737.50 | ||
| Net Income |
13,687.50 |
||
| Balance sheet | ||||||
| 2019 | 2020 | |||||
| Assets | ||||||
| Cash | 1,100.00 | 1,400.00 | ||||
| A/R | 440.00 | 750.00 | ||||
| Inventory | 700.00 | 910.00 | ||||
| Prepaid expenses | 200.00 | 240.00 | ||||
| Current assets total | 2,440.00 | 3,300.00 | ||||
| Fixed assets | 2,500.00 | 3,300.00 | ||||
| Accumulated depreciation | 1,000.00 | 2,200.00 | ||||
| Total Assets | 3,940.00 | 4,400.00 | ||||
| Liabilities | ||||||
| Accounts Payable | 340.00 | 400.00 | ||||
| Interest Payable | 400.00 | 420.00 | ||||
| Salary and Wages Payable | 310.00 | 290.00 | ||||
| Other current liabilities payable | 70.00 | 60.00 | ||||
| Income tax payable | 80.00 | 100.00 | ||||
| Tota Current Liabilities | 1,200.00 | 1,270.00 | ||||
| Long Term Debt | 700.00 | 820.00 | ||||
| Common Stock | 1,840.00 | 1,670.00 | ||||
| Retained Earnings | 200.00 | 640.00 | ||||
| Total Shareholders Equity | 2,040.00 | 2,310.00 | ||||
| Total Liabilities and Shareholders Equity | 3,940.00 | 4,400.00 |
