What is firm net capital spending and cash flow from assets

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Reference no: EM131972770

Redbird, Inc. 2016 Income Statement (In Millions of US Dollars)

Net sales $9,625

Less: Cost of goods sold 5,225

Less: Depreciation 1,890

Earnings before interest and taxes $2,510

Less: Interest paid 850

Taxable Income $1,660

Less: Taxes 581

Net Income $1,079

Additions to retained earnings $670

Dividends paid $400

Redbird, Inc. Balance Sheets (12/31/15 and 12/31/16) (In Millions of US Dollars)

2015 2016 2015 2016

Cash $1,455 $260 Accounts Payable $1,150 $2,863

Accounts Rec. 2,460 3,975 Accruals 2,600 1,628

Inventory 1,405 1,885 Current Liabilities $3,750 $4,491

Current Assets $5,320 $5,120 Long-term Debt 7,000 7,600

Net Fixed Assets $19,300 $21,720 Common Stock 5,500 5,700

Retained Earnings 8,370 9,049

Total Assets $24,620 $26,840 Total Debt & Equity $24,620 $26,840

What is the firm's net capital spending for 2016?

A. $19,830

B. $4,310

C. $2,420

D. $530

What is the firm's change in net working capital for 2016?

A. $366

B. $719

C. –$200

D. –$941

What is the firm's cash flow to stockholders for 2016?

A. $ 0

B. $200

C. $400

D. $600

What is the firm's cash flow from assets for 2016?

A. $3,819

B. $450

C. -$291

D. -$1,432

Calculate the firm’s cash ratio at the end of 2016.

A. 0.051

B. 0.058

C. 0.943

D. 0.988

Calculate the firm’s 2016 days’ costs in payables based on the payables balance at the end of 2016. Use a 365-day year.

A. 90 days

B. 109 days

C. 200 days

D. 278 days

Calculate the firm’s 2016 capital intensity ratio.

A. 6.028

B. 5.904

C. 3.719

D. 2.789

Which of the following shows the correct calculation of the firm’s 2013 DuPont Identity?

A. ($2,510/$14,749) x ($14,749/$26,840) x ($26,840/$5,700)

B. ($1,079/$9,625) x ($9,625/$12,091) x ($12,091/$7,600)

C. ($1,079/$9,625) x ($9,625/$26,840) x ($26,840/$14,749)

D. ($1,079/$2,510) x ($2,510/$7,600) x ($7,600/$9,049)

The firm’s 2016 DPS (dividends per share) is $4.00. What is the firm’s 2016 EPS (earnings per share)?

A. Can’t be determined.

B. 0.371 times

C. 67.9%

D. $10.79

At the end of 2016 the firm’s stock price is $150 per share. Calculate the firm’s 2016 Market-to-Book Ratio.

A. 1.017

B. 1.658

C. 2.632

D. 13.902

Reference no: EM131972770

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