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Sauron [17]
2 years ago
11

or the year ending December​ 31, 2018, Sparks Electric expects net cash provided by operations of $ 327 comma 000​, net cash use

d by investing activities of $ 138 comma 000​, and net cash provided by financing activities of $ 49 comma 000. Sparks plans to spend $ 251 comma 000 to add a warehouse for its operations and pays $ 31 comma 000 in cash dividends. What is the amount of free cash​ flow?
Business
1 answer:
RUDIKE [14]2 years ago
4 0

Answer:

Free cash flow = 0

Explanation:

Provided details, we have

Net cash provided by Operations = $327,000

Net cash used in investing activities = ($138,000)

Net cash provided by financing activities = $49,000

Cash flow for the year = $238,000

Less; Amount for dividend = $31,000

= $207,000

Further it provides to acquire warehouse for $251,000

That will not let anything left as free cash flow, rather it will be in negative.

= $207,000 - $251,000 = - $44,000

Since after all these there will be no cash for shareholders the free cash flow is 0. As for dividend, even that will not be payable as the value in negative amount is much more than dividend.

Free cash flow is the amount available for distribution to shareholder's after meeting all the capital needs of the company.

Thus here, it is zero.

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Charra [1.4K]

Answer:

$60 million

Explanation:

The computation of the value of operations after the repurchase is shown below:-

Total corporate value = Value of operation + marketable securities

(5 × $15 million) = Value of operation + $15  million

$75 million = Value of operation + $15  million

Value of operation = $75 million - $15  million

= $60 million

We simply applied the above formula so that the firm's value of operations after the repurchase could come

5 0
2 years ago
Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $95,000,000, and a current stock price
aivan3 [116]

Answer:

$12.22 per share

Explanation:

The computation of the stock price one year from now is shown below;

Current EPS = Net Income ÷ Number of shares

= $95,000,000/5,500,000

= $17.2727

Now  

P/E Ratio = Market Price per share ÷ Earnings per share

= $14.75 ÷ 17.2727

= 0.8539 times

Now

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= $14.3072  

So, the Price is

= 14.3072 × 0.8539

= $12.22 per share

6 0
2 years ago
the company maintains a 40% dividend payout ratio. The net income is $12,493. The total on the balance sheet is $106,900. What i
PilotLPTM [1.2K]

Internal growth rate is calculated by dividing retained earnings by total assets.

Retained earnings is calculated by subtracting dividends from net income

So: Retained earnings would be 12,493 - (12,493 X .4)

Then to find internal growth rate take your retained earning from above and divide by total assets (the total on the balance sheet : 106,900).

4 0
3 years ago
A regional trucking company landed a contract to supply products for a major retailer. To do this, it needs to hire an IT profes
Zigmanuir [339]

Answer: • set up the computer hardware for the database.

• Set up the computer software for the database.

• train designated employees to use the database

• protect the confidentiality of the database

Explanation:

The options include:

a. Set up the computer hardware for the database

b. Set up the computer software for the database

c. train designated employees to use the database

d. Design a help page to show people how to use the database

e. protect the confidentiality of the database

Since the new hire is an IT professional who is employed to create a shipment database, the individual should be able to:

• set up the computer hardware for the database.

• Set up the computer software for the database.

• train designated employees to use the database

• protect the confidentiality of the database

7 0
3 years ago
Luis regularly reminds his team members of the purpose of their work and why they are important to the organization. he also reg
Akimi4 [234]

Answer:

Transformational leadership style.

Explanation:

Transformational leadership creates positive change in the people and environment being led, and seeks to empower followers to better themselves and ultimately become leaders too.

7 0
2 years ago
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