Use the following income statements and balance sheets to

Assignment Help Finance Basics
Reference no: EM13483322

Use the following income statements and balance sheets to calculate Garnet Inc."s free cash flow for 2003.

Garnet Inc.

INCOME STATEMENT

 

2003

2002

Net sales

$530.0

$500.0

Costs (except depreciation)

400.0

380.0

Depreciation

30.0

25.0

Total operating costs

$430.0

$405.0

Earnings before interest and taxes (EBIT)

100.0

95.0

Less interest

23.0

21.0

Earnings before taxes

77.0

74.0

Taxes (40%)

30.8

29.6

Net income

$ 46.2

$ 44.4

 

BALANCE SHEET

2003

2002

Assets



Cash

$ 28.0

$ 27.0

Marketable securities

69.0

66.0

Accounts receivable

84.0

80.0

Inventories

112.0

106.0

Total current assets

$293.0

$279.0

Net plant and equipment

281.0

265.0

Total assets

$574.0

$544.0

Liabilities and Equity

Accounts payable

$ 56.0

$ 52.0

Notes payable

138.0

130.0

Accruals

28.0

28.0

Total current liabilities

$222.0

$210.0

Long-term bonds

$173.0

$164.0

Common stock

100.0

100.0

Retained earnings

79.0

70.0

Common equity

$179.0

$170.0

Total liabilities and equity

$574.0

$544.0

Reference no: EM13483322

Questions Cloud

During 2013 sanchez sells inventory costing 120000 to : please show work following are several figures reported for preston and sanchez as of dec. 312013.preston
Exchange rates fluctuate under both the fixed exchange rate : exchange rates fluctuate under both the fixed exchange rate and floating exchange rate systems. what then is the
Stillwater designs rebuilds defective units of its s12l7 : stillwater designs rebuilds defective units of its s12l7 kicker speaker model. during the year stillwater rebuilt 7500
A companys planned activity level for next year is expected : a companys planned activity level for next year is expected to be 100000 machine hours. at this level of activity the
Use the following income statements and balance sheets to : use the following income statements and balance sheets to calculate garnet inc.s free cash flow for 2003.garnet
In the current year alice reports 150000 of salary income : in the current year alice reports 150000 of salary income 20000 of income from activity x 35000 and 15000 losses from
Complete the analysis below to determine if the decision : the management of peterson manufacturing company has asked for your assistance in deciding whether to continue
Louis industries normally produces and sells 5000 keyboards : louis industries normally produces and sells 5000 keyboards for personal computers each month. variable manufacturing
Crydon inc manufactures an advanced swim fin for scuba : crydon inc. manufactures an advanced swim fin for scuba divers. management is now preparing detailed budgets for the

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd