Q 18. Last year South Bend Inc. had $500 million of sales, a…
Q 18. Last year South Bend Inc. had $500 million of sales, and the sales will be forecasted $600 million this year. Last years’ spontaneous assets were $200 million. What is the forecasted spontaneous assets this year. Assume that the firm is operated at full capacity and the firm is using percent of sales method for forecasting.
Read DetailsQ11. MicroDrive Inc. December 31 Balance Sheets …
Q11. MicroDrive Inc. December 31 Balance Sheets (in millions of dollars) 2024 2023 Assets Cash $10 $15 Short-term investments $0 $65 Accounts receivable $375 $315 Inventories $615 $415 Total current assets $1,000 $810 Net plant and equipment (Net FA) $1,000 $870 Total assets $2,000 $1,680 Liabilities and equity Accounts payable $60 $30 Notes payable $110 $60 Accruals $140 $130 Total current liabilities $310 $220 Long-term bonds $754 $580 Total liabilities $1,064 $800 Preferred stock (400,000 shares) $40 $40 Common stock (50,000,000 shares) $130 $130 Retained earnings $766 $710 Total common equity $896 $840 Total liabilities and equity $2,000 $1,680 MicroDrive Income Statements for Years Ending December 31 (in millions of dollars) 2024 2023 INCOME STATEMENT Net sales $3,000.0 $2,850.0 Operating costs except depreciation $2,616.2 $2,497.0 EBITDA $383.8 $353.0 Depreciation and amortization $100.0 $90.0 Earnings before interest and taxes (EBIT) $283.8 $263.0 Less interest $88.0 $60.0 Earnings before taxes (EBT) $195.8 $203.0 Taxes (t=40%) $78.3 $81.2 Net Income before preferred dividends $117.5 $121.8 Preferred dividends $4.0 $4.0 Net Income available to common stockholders $113.5 $117.8 Common dividends $57.5 $53.0 Addition to retained earnings $56.0 $64.8 Calculate MicroDive’s free cash flow (FCF) for Year 2014.
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