Reference no: EM133207407
Financial statements
A. Income Statement
At the end of last year, Tesla, Inc. achieved $4,567,000 million in revenue (EBITDA). Expenses depreciation and amortization were $880,000 thousand, interest paid $61,000 thousand and the tax rate was 9.54%. At the end of the fiscal year the company had current assets totaling $27,100,000 million, $11,147,000 million in accounts payable, $3,670,000 million in accruals, $1,088,000 million in obligations payable and an expenditure of capital of $39,905,000 million in property, plant and equipment. Suppose the company Tesla, Inc. does not have surplus cash.
1. Determine the net income or loss of the business. Explain how this result can help the manager in decision making in the company.
2. Calculate net working capital and net operating working capital. explain the difference between both results.
3. If the company had a capital expenditure of $6,000,000 million in property, plant and equipment last year and net operating working capital remained constant, what is the company's free cash flow? Explain how the result of the flow available assists managers in the financial planning process.
B. Status (Balance Sheet)
The assets of the company NIO Inc. include current assets, property, plant and equipment and not has excess cash (Free Cash). It has current assets valued at $64,308,455 million and its fixed assets are valued at $11,909,746 million. Report accounts payable of $15,856,158 million, accumulations of $7,630,103 million, obligations payable (debts short-term) of 8,426,048 million, long-term debts of $13,664,297 and stockholders' equity total for $37,486,255 million. Your balance sheet reflects that you have accounts payable and accumulated debts. Generally, the company operates on a debt and equity basis.
B. Status (Balance Sheet)
The assets of the company NIO Inc. include current assets, property, plant and equipment and not has excess cash (Free Cash). It has current assets valued at $64,308,455 million and its fixed assets are valued at $11,909,746 million. Report accounts payable of $15,856,158 million, accumulations of $7,630,103 million, obligations payable (debts short-term) of 8,426,048 million, long-term debts of $13,664,297 and stockholders' equity total for $37,486,255 million. Your balance sheet reflects that you have accounts payable and accumulated debts. Generally, the company operates on a debt and equity basis.
1. Determine the total amount of the company's debt.
2. Calculate the accounting liability.
3. Determine the net working capital of the company.
4. Calculate net operating working capital.
5. Explain how net working capital and operating working capital can support the managerial decisions and strategic.
C. Financial statements, cash flow and taxes.
The balance sheets at the end of 2021 and 2020 of Ford Motor Company are shown below:
|
|
2021
|
2020
|
|
Cash
|
49,593,000
|
49,961,000
|
|
Accounts Receivable
|
43,913,000
|
52,394,000
|
|
Inventories
|
12,065,000
|
10,808,000
|
|
Total Current Assets
|
105,573,021
|
102,357,020
|
|
Property, Plant and Equipment
|
95,842,000
|
97,882,000
|
|
Total Assets
|
201,415,021
|
200,239,020
|
|
Debts to pay
|
22,349,000
|
22,204,000
|
|
Accumulations
|
888,000
|
1,215,000
|
|
Obligations payable
|
50,037,000
|
51,666,000
|
|
Total liabilities currents
|
73,274,000
|
75,085,000
|
|
Long term debts
|
89,448,000
|
111,332,000
|
|
Total liabilities
|
162,722,000
|
186,417,000
|
|
Common actions
|
41,000
|
41,000
|
|
Retained Earnings
|
38,652,021
|
13,781,020
|
|
Total stockholders' equity
|
38,693,021
|
13,822,020
|
|
Total liabilities plus Capital
|
201,415,021
|
200,239,020
|
1. In 2021, Ford Motor Company achieved sales of $136,441,000 million and an EBITDA of 17% of sales. Depreciation as amortization of fixed assets was 11% and interest paid of $7,055.00 million. On the other hand, the tax rate was 35% and the 38% of net income is allocated to dividends. Prepare an income statement taking into account the data presented.
2. Prepare the capital statement for the period ending December 31, 2021.
3. Considering that Ford Motor Company does not have excess cash available, determines the available cash flow (Free Cash Flow) and working capital operative.
4. Explain the effect it would have on the taxes paid by shareholders and the company if Ford Motor Company will increase the rate it pays for dividends.
5. Calculate the economic value added (EVA) and the market value added (MVA) in 2021, considering that the cost of capital after tax is 12% and the price of the Ford Motor Company stock is $20 with 9 million shares outstanding.