Calculate Halifax Incorporated liabilities on September

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Q1. Halifax Incorporated reported the following financial results on 30 September 2018.

$ million

Unearned revenue260

Account category Common stock at par 42

Capital in excess of par 558

Accounts payable 1,315

Treasury stock 3000

Retained earnings 4,160

Accrued expenses 950

Accumulated other comprehensive loss 365

Long term debt 1,760

Calculate Halifax Incorporated's liabilities on 30 September 2018.

a. $4,025 million

b. $4,285 million

c. $3,025 million

d. $3,075 million

Q2. Assume U.S. GAAP holds. An analyst gathered the following information about a company for a given year:

$m

Net income 1,885

Depreciation 335

Amortization 35

Interest expense 172

Net capital expenditure 1,385

Net borrowing 250

Working capital investment 235

Tax rate 25%

Free cash flow to the firm (FCFF) for the year is closest to:

a. $705m.

b. $625m.

c. $964m.

d. $608m.

Reference no: EM132894053

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