Dunder-Mifflin had Cash Flow from Assets of $55,000 last year with an Operating Cash Flow of $120,000 and a Change in Net Working Capital of a negative $35,000. What was their Capital Spending? A. -$30,000 B. -$210,000 C. $100,000 D. -$100,000
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- Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?Given are the following data for year 1:Revenue = $45 million; Variable cost = $10 million; Fixed cost = $5 million; Depreciation = $1 million; Interest expense = $3 million; Capital expenditure = $12 million; Change in working capital = $2 million. Corporate tax rate is 30%. Calculate the free cash flow to firm (FCFF) for year 1: a. $4.2 million b. $6.3 million c. $7.3 million d. $5.2 millionThe manager of a production system expects to spend $100,000 the first year with amounts decreasing by $10,000 each year. Income is expected to be $400,000 the first year, decreasing by $50,000 each year. a) Draw cash flow diagrams of expenditures and income separately over a 6 year period at an interest rate of 10% per year. b) Determine the present worth of the company's net cash flow (present worth = present income - present expenditure). Please write fomula and show your solution step by step. Use compound interest tables. How much money could a fim borow to finance a project if it is expected revenues of 5140,000 yeuly for the 9 years pesiod of time with the interest rate 9% per year? Please wnte fomuls and show your solutica step by step. Use compound iaterest tahles a) drawe the Cash fiow b) find the selution C) find the future value of the evenues
- The manager of a production system expects to spend $100,000 the first year with amounts decreasing by $10,000 each year. Income is expected to be $400,000 the first year, decreasing by $50,000 each year. a) Draw cash flow diagrams of expenditures and income separately over a 6 year period at an interest rate of 10% per year. b) Determine the present worth of the company's net cash flow (present worth = present income - present expenditure). Please write fomula and show your solution step by step. Use compound interest tables. %3DA company is considering a $240,000 investment in machinery with the following net cash flows. The company requires a 9% return on its investments. Initial investment Required rate of return Required: $240,000 9% (a) Compute the net present value of this investment. Present Value of Net Period 1 Net Cash Flows Cash Flows $53,000 $48,624 20 49,000 41,242 3 136,000 105,017 4 78,000 55,257 5 61,000 39,646 Totals $377,000 $289,786 (240,000) $49,786 Initial investment Net present value Verify the value of cell C18 using the NPV function (b) Should the machinery be purchased? YesA company is considering a $166,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow $10,000 $28,000 $55,000 $42,000 $111,000 (a) Compute the net present value of this investment.(b) Should the machinery be purchased?
- A company is considering a $168,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flow (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Year Year 11 Year 2 Year 1 $10,000 Complete this question by entering your answers in the tabs below. Year 3 Year 4 Year 5 Totals Initial investment Net present value Required A Required B Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) Year 2 $29,000 Net Cash Flows $ 0 Present Value Factor Year 3 $55,000 Present Value of Net Cash Flows $ $ Required A Year, 4 $42,000 0 0 Year 5 $113,000 Required >A project will result in a $25,000 increase in accounts receivable and require a decrease in inventory levels by $10,000 to $95,000. What is the net cash flow for capital budgeting purposes? a. $35,000 b. -$15,000 c. -$35,000 d. $15,000Last year, Industrial Industries had Operating Cash Flow of 625,000. It had Net Capital Spending of -875,000 and an investment in Net Working Capital of 25,000. What was its Cash Flow from Assets (or Free Cash Flow)? Question 8 options: ($275,000) $1,475,000 $1,515,000 $1,525,000 ($1,350,000)
- Etobicoke Enterprises is deciding whether to expand its production facilities. Although long-term cash flows are difficult to estimate, management has projected the following cash flows for the first two years (in millions of dollars): Revenues Operating Expenses (other than depreciation) CCA Increase in Net Working Capital Capital Expenditures Marginal Corporate Tax Rate Year 1 128.5 47.2 29.9 3.1 28.7 35% Year 2 155.5 63.7 34.1 8.9 41.6 35% a. What are the incremental earnings for this project for years 1 and 2? (Note: Assume any incremental cost of goods sold is included as part of operating expenses.) b. What are the free cash flows for this project for the first two years?The manager of a production system expects to spend S100,000 the first year with amounts increasing by $10,000 each year. Income is expected to be $400,000 the first year, decreasing by $50,000 each year. a) Draw cash flow diagrams of expenditures and income separately over an 8 year period at an interest rate of 12% per year. b) Detemine the present worth of the company's net cash flow (present worth = present income present expenditure). Please write fomula and show your solution step by step. Use compound interest tables.La Falaise Rouge Enterprises is deciding whether to expand its production facilities. Although long-term cash flows are difficult to estimate, management has projected the following cash flows for the first two years (in millions of dollars). Calculate the unlevered net income for Year 2. Revenues Costs of goods sold and operating expenses other than depreciation Depreciation Increase in networking capital Capital expenditures Marginal corporate tax rate Year 1 108 -36.6 -24.2 5.1 32.1 43% Year 2 156 -36.6 -38.6 8.9 42.5 43%