Statement of Cash Flows W.C. Cycling had $67,000 of cash at year-end 2011 and $25,000 in cash at year-end 2012. The firm invested in property, plant, and equipment totaling $280,000. Cash flow from financing activities totaled +$250,000. Round your answers to the nearest dollar, if necessary.Statement of Cash Flows

W.C. Cycling had $67,000 of cash at year-end 2011 and $25,000 in cash at year-end 2012. The firm invested in property, plant, and equipment totaling $280,000. Cash flow from financing activities totaled +$250,000. Round your answers to the nearest dollar, if necessary.

What was the cash flow from operating activities?

 

$ 

If accruals increased by $20,000, receivables and inventories increased by $195,000, and depreciation and amortization totaled $19,000, what was the firm's net income?

 

$ 

 

 

 

 

Problem 3-15

Free Cash Flow

Financial information for Powell Panther Corporation is shown below:

Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)

 

  2012 2011   

Sales $2,280.0 $1,900.0   

Operating costs excluding depreciation and amortization 1,710.0 1,615.0   

EBITDA $570.0 $285.0   

Depreciation and amortization 50.0 40.0   

Earnings before interest and taxes $520.0 $245.0   

Interest 50.0 42.0   

Earnings before taxes $470.0 $203.0   

Taxes (40%) 188.0 81.2   

Net income  

$282.0   

 

 

$121.8   

 

  

Common dividends  

$254.0   

 

 

$97.0   

 

 

Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)

 

  2012 2011   

Assets   

Cash and equivalents $38.0 $29.0   

Accounts receivable 228.0 190.0   

Inventories 568.0 437.0   

Total current assets $834.0 $656.0   

Net plant and equipment 499.0 399.0   

Total assets  

$1,333.0   

 

 

$1,055.0   

 

  

Liabilities and Equity   

Accounts payable $182.0 $152.0   

Notes payable 46.0 38.0   

Accruals 143.0 114.0   

Total current liabilities $371.0 $304.0   

Long-term bonds 456.0 380.0   

Total debt $827.0 $684.0   

Common stock 441.0 334.0   

Retained earnings 65.0 37.0   

Common equity  

$506.0   

 

 

$371.0   

 

  

Total liabilities and equity  

$1,333.0   

 

 

$1,055.0   

 

 

Write out your answers completely. For example, 25 million should be entered as 25,000,000.

What was net operating working capital for 2011 and 2012?

 

2011: $ 

 

2012: $ 

What was the 2012 free cash flow?

 

$ 

How would you explain the large increase in 2012 dividends?

The large increase in free cash flow from 2011 to 2012 explains the large increase in 2012 dividends.

The large increase in net income from 2011 to 2012 explains the large increase in 2012 dividends.

The large increase in EBIT from 2011 to 2012 explains the large increase in 2012 dividends.

The large increase in sales from 2011 to 2012 explains the large increase in 2012 dividends.

The large increase in retained earnings from 2011 to 2012 explains the large increase in 2012 dividends.

 

 

 

 

 

Statement of Stockholders' Equity

In its most recent financial statements, Newhouse Inc. reported $20 million of net income and $220 million of retained earnings. The previous retained earnings were $209 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

$