BUS 401 Week 1, DQ 2, Cash Flow and Ratio Anaalysis
BUS 401 Week 1, DQ 2, Cash Flow and Ratio Anaalysis fin571
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This 2 page Study Guide was uploaded by an elite notetaker on Wednesday November 11, 2015. The Study Guide belongs to fin571 at Kaplan University taught by in Fall 2015. Since its upload, it has received 28 views.
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Date Created: 11/11/15
DQZ Cash Flow and Ratio Analysis From Chapters 3 and 4 complete Study Problems 32 page 85 and 42 page 122 and post the answers to the discussion board Remember to complete all parts of the problems and report the results of your analysis Do not forget to show the necessary steps and explain how your attained that outcome Respond to at least two of your classmates postings Operating Income 75 Depreciation Expense 12 Income Taxes 17 Aftertax cash flows from operations 70 Increase in current assets 50 Increase in current liabilities Increase in networking capital 15 Change in gross fixed assets 35 Firm s Free Cash Flow Free Cash The change in gross fixed assets is equal to the change in net fixed assets 23 plus the depreciation expenses for the 3 in gross fixed assets of 35 Financing Cash Flows Interest Expense Increase in common stock Dividend Financi Cash Flows Part 2 Operating Income 12 x 65000000 7800000 Net Income Operating Income 7800000 Minus Interest Expense 06 x 20000000 1200000 Taxes 30 x 6600000 1980000 Net Income 4620000 Operating Return on Assets Operating incometotal assets 780000042000000 19 or 19 Return on Equity Net Income Common Equity 4620000 net22000000 return 21 or 20 Assuming interest must be paid on all debt 20000000 x 6 interest rate 1200000
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