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Using Bookbinder Corporation’s financial statements (shown b…

Posted byAnonymous September 29, 2025October 1, 2025

Questions

Using Bооkbinder Cоrporаtion’s finаnciаl statements (shown below), answer the following questions. (5 Points). How much of the FCF did Bookbinder use for each of the following purposes in 2024: 1) after-tax interest, 2) net debt repayments, 3) dividends, 4) net stock repurchases, and 5) net purchases of short-term investments?   Bookbinder Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)   2024   2023 Sales $16,500   $15,000 Operating Costs Excluding depreciation 14,040   12,750 Depreciation and amortization 570   540 Earnings before interest and taxes $1,890   $1,710      Less interest 180   150 Pre-tax income $1,710   $1,560     Taxes (40%) 684   624 Net income available to common stockholders $1,026   $936 Common dividends $330   $300   Bookbinder Corporation: Balance Sheets as of December 31 (Millions of Dollars)   2024   2023 Assets       Cash $825   $750 Short-term investments 165   150 Accounts receivable 4,125   3,750 Inventories 2,475   2,250   Total current assets $7,590   $6,900   Net plant and equipment 5,775   5,250 Total assets $13,365   $12,150         Liabilities and Equity       Accounts payable $1,650   $1,500 Accruals 825   750 Notes payable 576   300 Total current liabilities $3,051   2,550 Long-term debt 1,650   1,500 Total liabilities $4,701   $4,050 Common stock 6,468   6,600 Retained earnings 2,196   1,500 Total common equity $8,664   $8,100   Total liabilities and equity $13,365   12,150  

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Tags: Accounting, Basic, qmb,

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