Quantitative Problem: Rosnan Industries 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current habilities Long-term debt Total liabilities Common stock Retained eamings Common equity Total liabilities and equity Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25) Net income Income Statements Dividends paid Addition to retained earnings Shares outstanding Price WACC 2019 $100 275 375 $750 2.300 $3,050 $150 75 150 $375 450 825 1.225 1.000 2,225 $3.050 2019 $2.155 1.250 $905 100 $805 63 $742 186 $357 $54 $600 100 $25.00 10.00% 2018 $85 300 250 $635 1,490 $2.125 $85 50 75 $210 290 500 1.225 400 1.625 $2.125 2018 $1,500 1,000 $500 75 $425 46 $379 95 $284 $40 $236.25 100 $22.50 The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess cash Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCR Round your answer to the nearest cent.
Quantitative Problem: Rosnan Industries 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current habilities Long-term debt Total liabilities Common stock Retained eamings Common equity Total liabilities and equity Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25) Net income Income Statements Dividends paid Addition to retained earnings Shares outstanding Price WACC 2019 $100 275 375 $750 2.300 $3,050 $150 75 150 $375 450 825 1.225 1.000 2,225 $3.050 2019 $2.155 1.250 $905 100 $805 63 $742 186 $357 $54 $600 100 $25.00 10.00% 2018 $85 300 250 $635 1,490 $2.125 $85 50 75 $210 290 500 1.225 400 1.625 $2.125 2018 $1,500 1,000 $500 75 $425 46 $379 95 $284 $40 $236.25 100 $22.50 The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess cash Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCR Round your answer to the nearest cent.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 92PSA: A Preparation of Ratios Refer to the financial statements for Burch Industries in Problem 12-89A and...
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