solution star industries has published its annual account. it indicates that during the year the year the firm had sales of $3,500,000, cost of goodssold totaled $2,300,000, operating expenses of $420,000, and depreciation expenses 0f $240,000. the firm is in 30% tax bracket. determine the firm's operating cash flow?

solution star industries has published its annual account. it indicates that during the year the year the firm had sales of $3,500,000, cost of goodssold totaled $2,300,000, operating expenses of $420,000, and depreciation expenses 0f $240,000. the firm is in 30% tax bracket. determine the firm's operating cash flow?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 9P: Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current...

See similar textbooks

Similar questions

The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?
Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current year. Carter has $12 million in total net operating assets in the current year and had $10 million in the previous year. What is its free cash flow?
consider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries ( we usually call this SG&A for selling, general and administrative) of 1750.0million, depreciation of 2250.0 million, and interest expense of 2300 million. tax rate =21%. a. generate an income statement and show net income b. what is the company's operating cash flow? c. if there are 775.2 million shares outstanding, what is the EPS? d. if the company has a payout ratio of 20%, what is the dividends per share?
Consider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries (we usually call this SG&A for selling, general and administrative) of $1,750.0 million, depreciation of $2,250.0 million, and interest expense of $2,300 million. Tax rate=21%. Generate an income statement and show net income. What is the company’s operating cash flow? If there are 775.2 million shares outstanding, what is the EPS? If the company has a payout ratio of 20%, what is the dividends per share?
Determine the operating cash flow (OCF) for Ecualimentos S.A., based on the following data. (All values are in thousands of dollars.). During the year the firm had sales of $2,500, cost of goods sold totaled $1,800, operating expenses totaled $300, and depreciation expenses were $200. The firm is in the 35% tax rate.
Disturbed, Incorporated, had the following operating results for the past year: sales = $22,563; depreciation = $1,360; interest expense = $1,096; costs = $16,515. The tax rate for the year was 23 percent. What was the company's operating cash flow?
Find the operating cash flow for the year for Monisan and Sons if it had sales revenue of $81,200,000, cost of goods sold of $35,700,000, sales and administrative costs of $6,800,000, depreciation expense of $8,000,000, and a tax rate of 30%.
Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $318,600,000, cost of goods sold of $134,300,000, sales and administrative costs of $39,600,000, depreciation expense of $64,800,000, and a tax rate of 40%. The operating cash flow is $ (Round to the nearest dollar.)
Operating cash flow. Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $308,900,000, cost of goods sold of $146,800,000, sales and administrative costs of $39,400,000, depreciation expense of$66,700,000, and a tax rate of 40% . The operating cash flow is $ (Round to the nearest dollar.)
Sun, Incorporated has sales of $42,730, costs of $13,830, depreciation expense of $2,030, and interest expense of $1,210. The tax rate is 20 percent. What is the firm's Operating Cash Flow?
Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $310,000,000, cost of goods sold of $134,000,000, sales and administrative costs of $40,100,000, depreciation expense of $67,000,000, and a tax rate of 40%.
A company has a five year weighted average after tax cash flow of $125,000. It has been determined the discount rate is 19%, short term expected growth is 11%, and long-term sustainable growth is 3%. The analyst has also determined excess cash of $25,000. What is the value of the company based on the capitalization of after tax cash flows? a. $625,000 b. $657,895 c. $781,250 d. $909,090