Scribd Logo
Upload

Welcome to Scribd!

  • 3 views

    Chapter 2 Problems

    Uploaded by

    Темирлан Альпиев
    1) The document provides calculations for shareholders' equity, net working capital, net income, retained earnings, earnings per share, EBIT, and operating cash flow for a company. 2) It also includes the calculation of current assets from net working capital and current liabilities, and the book value of total assets from net fixed assets and current assets. 3) Finally, it shows the calculation of the total market value of a company's assets by summing the market values of fixed assets and net working capital.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Chapter 2 Problems

    Uploaded by

    Темирлан Альпиев
    3 views11 pages
    1) The document provides calculations for shareholders' equity, net working capital, net income, retained earnings, earnings per share, EBIT, and operating cash flow for a company. 2) It also includes the calculation of current assets from net working capital and current liabilities, and the book value of total assets from net fixed assets and current assets. 3) Finally, it shows the calculation of the total market value of a company's assets by summing the market values of fixed assets and net working capital.

    Original Description:

    Original Title

    Chapter 2 Problems (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1) The document provides calculations for shareholders' equity, net working capital, net income, retained earnings, earnings per share, EBIT, and operating cash flow for a company. 2) It also includes the calculation of current assets from net working capital and current liabilities, and the book value of total assets from net fixed assets and current assets. 3) Finally, it shows the calculation of the total market value of a company's assets by summing the market values of fixed assets and net working capital.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    3 views11 pages

    Chapter 2 Problems

    Uploaded by

    Темирлан Альпиев
    1) The document provides calculations for shareholders' equity, net working capital, net income, retained earnings, earnings per share, EBIT, and operating cash flow for a company. 2) It also includes the calculation of current assets from net working capital and current liabilities, and the book value of total assets from net fixed assets and current assets. 3) Finally, it shows the calculation of the total market value of a company's assets by summing the market values of fixed assets and net working capital.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 11

    Chapter 2

    1) Shareholders equity = (5400+28100)-(4100+10600)=18800


    NWC=5400-4100=1300
    2) Net income= (742000-316000-39000-34000)*0.79=278870
    3) Retained earnings=278870-125000=153870
    4) EPS=(Net income)/Shares outstanding=278870-0/75000=3.3 (2.0516 with 125000 paid div)
    5)
    6) EBIT= 49800-23700-2300= 23800 OCF = EBIT + Depreciation – Taxes OCF = $23,800 + $2,300 - $4,840 OCF = $21,260
    7) 3.1 mln – 2.3 mln + 327 000= 1 127 000
    INTERMADIATE
    12)

    Answer a.

    Current Assets = Net Working Capital + Current Liabilities


    Current Assets = $235,000 + $895,000
    Current Assets = $1,130,000

    Book Value of Assets = Net Fixed Assets + Current Assets


    Book Value of Assets = $3,400,000 + $1,130,000
    Book Value of Assets = $4,530,000
    Answer b.

    Market Value of Fixed Assets = $5,100,000


    Market Value of NWC = $1,150,000

    Sum of Market Values of Fixed Assets and NWC = Market Value of Fixed Assets + Market Value of NWC
    Sum of Market Values of Fixed Assets and NWC = $5,100,000 + $1,150,000
    Sum of Market Values of Fixed Assets and NWC = $6,250,000

    You might also like