Reference no: EM13937159
Volbeat Corp. shows the following information on its 2015 income statement: sales = $403,000; costs = $305,000; other expenses = $7,900; depreciation expense = $18,200; interest expense = $13,800; taxes = $20,335; dividends = $11,000. In addition, you’re told that the firm issued $5,300 in new equity during 2015 and redeemed $3,800 in outstanding long-term debt.
a. What is the 2015 operating cash flow? (Do not round intermediate calculations.) Operating cash flow $
b. What is the 2015 cash flow to creditors? (Do not round intermediate calculations.) Cash flow to creditors $
c. What is the 2015 cash flow to stockholders? (Do not round intermediate calculations.) Cash flow to stockholders $
d. If net fixed assets increased by $28,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.) Addition to NWC $
Level of debt increases that tax benefits of debt increase
: As the level of debt increases that tax benefits of debt increase until. Which of the following would increase a firm's financial leverage? Leverage can __________ a firm's expected earnings per share, but by doing so it is not necessary that it wil..
|
Differences between a micro hedge and a macro hedge
: What are the differences between a micro hedge and a macro hedge for an FI? Why is it generally more efficient for FIs to employ a macro hedge than a series of micro hedges?
|
Expansion project-requires initial fixed asset investment
: Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,430,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worth..
|
The process of evaluating firms operations
: The process of evaluating a firm's operations to determine the minimum volume it must sell to avoid losing money is referred to as: The degree of financial leverage is measured by relating the percentage change in earnings per share to the percentage..
|
What is cash flow to stockholders and operating cash flow
: Volbeat Corp. shows the following information on its 2015 income statement: sales = $403,000; costs = $305,000; other expenses = $7,900; depreciation expense = $18,200; What is the 2015 operating cash flow? What is the 2015 cash flow to stockholder..
|
Liquidation sale
: Mathias has been the sole proprietor of a clothing store for many years. He intends to retire after holding a "liquidation sale". He wants to avoid ordinary income from the sale of the business inventory, so he shuts down the store for one month and ..
|
Looking at new sausage system with installed cost
: Kolby’s Korndogs is looking at a new sausage system with an installed cost of $645,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $103,000. If the..
|
What is the value of the firm
: Cool Manufacturing has an expected EBIT of $89,000 in perpetuity and a tax rate of 35 percent. The firm has $210,000 in outstanding debt at an interest rate of 8.80 percent, and its unlevered cost of capital is 11 percent. What is the value of the fi..
|
What is the target variable cost per mouse
: A company believes it can sell 5,500,000 of its proposed new optical mouse at a price of $10.50 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the targ..
|