Company had no amortization charges also no non-operating

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Q. XYZ newly reported $48,909 of sales, $16,389of operating costs other than reduction, also $5,402 of depreciation. Company had no amortization charges also no non- operating income. It had $8,000 of bonds outstanding which carry the 10% interest rate. Compute the firm's taxable income, or earnings before taxes (EBT)?

XYZ's EBIT is= $12 million. Depreciation expense is= $0.5 million also interest expense is $0.5 million. Corporate tax rate is= 30%. Company has 10 million in operating current assets also $3 million operating present liabilities. It has= $12 million in net plant also equipment. After-tax cost of capital (WACC) is 8%. Suppose that only non-cash item is reduction. Total net operating capital last year was= $15 million.

i) Find out the company's free cash flow for the year?

ii) Donner United has total owner's equity of= $18,800. Firm has present assets of= $23,100, present liabilities of= $12,200, also total assets of= $36,400. Find out the value of long-term debt?

Reference no: EM139406

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