Reference no: EM132068285

Question 1  : Using the following financial statement data, calculate the difference between total nonoperating assets and total nonoperating liabilities. If your result is a negative value, please present your answer with a negative sign.

Cash	$176
Short-term investments	$231
Accounts receivable	$392
Inventory	$493
Other current assets	$164
Fixed assets (net)	$1,082
Intangible assets	$216
Long-term investments	$312
Other noncurrent assets	91
Short-term debt	$284
Accounts payable	$350
Accrued liabilities	$200
Other current liabilities	$110
Long-term debt	$1,055
Other long-term liabilities	$225
Stockholders' equity	$259

Question 2  : Using the following financial statement data, calculate total operating assets.

Cash	$130
Short-term investments	$278
Accounts receivable	$375
Inventory	$618
Other current assets	$210
Fixed assets (net)	$1,095
Intangible assets	$240
Long-term investments	$255
Other noncurrent assets	$122
Short-term debt	$119
Accounts payable	$306
Accrued liabilities	$263
Other current liabilities	$58
Long-term debt	$934
Other long-term liabilities	$202
Stockholders' equity	$279

Question 3  : For the most recent year KRJ Enterprises reported net operating profits after tax of $2,461 million and it expects its NOPAT to increase by 3% next year. The company also reported net operating assets of $32,545 million and expects NOA to increase by 4% next year. What would be the forecasted amount of free cash flow (in $ million)for next year?

Question 4  : Based on last year's results and various projections of its future operations, you have determined that Amazon Corporation's free cash flows, which were $3,761 million this year will grow in perpetuity at  4% per year. The company has nonoperating assets of $612 million and nonoperating liabilities of $2,328 million. The weighted average cost of capital is 12% and there are 613 million shares of common stock outstanding. What is the implied value of the company's common stock? Present your answer to two decimal places (e.g., $20.00).

Question 5  : Using the following financial statement data, calculate netoperating assets.

Cash	$188
Short-term investments	$232
Accounts receivable	$574
Inventory	$452
Other current assets	$293
Fixed assets (net)	$1,453
Intangible assets	$214
Long-term investments	$330
Other noncurrent assets	$155
Short-term debt	$146
Accounts payable	$325
Accrued liabilities	$373
Other current liabilities	$304
Long-term debt	$935
Other long-term liabilities	$356
Stockholders' equity	$281

Question 6  : Everglade Enterprises reported the following information for fiscal 2017 and 2017. What was the company's free cash flow for 2017?

December 31	2017	2016
Operating assets	$74,275	$61,707
Operating liabilities	$50,001	$38,394
Net cash flow from operations	$7,933	$5,481
Net operating profit after tax (NOPAT)	$5,756	$4,307

Question 7  : Venice Surf Co. expects to generate free cash flows of $2,761 million in 2018, $3,497 million in 2019, and $4,122 million in 2020. Free cash flows after 2020 are expected to grow indefinitely at an annual rate of 4%. Assuming a discount rate of 14%, what would be the terminal or horizon value of the cash flows occurring after 2020? That is, what would be the present value of all free cash flows (in $ million) occurring after 2020 as of the beginning of 2020? Present your answer to two decimal places (e.g., $20.00).

Question 8  : Selected data from the financial statements of KRJ Manufacturing are presented below. Calculate the company's net operating profit after taxes (NOPAT).

Sales	$136,985
Operating profits (EBIT)	$33,846
Earnings before taxes (EBT)	$30,373]
Tax expense	$11,799

Question 9  : Venice Surf Co. expects to generate free cash flows of $2,593 million in 2018, $3,213 million in 2019, and $4,997 million in 2020. In addition, the terminal or horizon value at year-end 2020 of all free cash flows generated after 2020 is $36,881 million. The company has nonoperating assets of $4,985 million and nonoperating liabilities of $8,307 million and there are 950 million shares outstanding. Estimate the value (per share) or each share of common stock using the free cash flow information above, and assuming a discount rate of 12.56%. Present your answer to two decimal places (e.g., $20.00).

Question 10  : Using the following financial statement data, calculate total operating liabilities.

Cash	$177
Short-term investments	$269
Accounts receivable	$304
Inventory	$412
Other current assets	$160
Fixed assets (net)	$1,174
Intangible assets	$164
Long-term investments	$309
Other noncurrent assets	$82
Short-term debt	$192
Accounts payable	$541
Accrued liabilities	$284
Other current liabilities	$181
Long-term debt	$997
Other long-term liabilities	$328
Stockholders' equity	$312