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Marina86 [1]
2 years ago
8

You are considering an investment in Crew Cut, Inc. and want to evaluate the firm's free cash flow. From the income statement, y

ou see that Crew Cut earned an EBIT of $23.18 million, paid taxes of $3.82 million, and its depreciation expense was $7.82 million. Crew Cut's gross fixed assets increased by $10.18 million from 2017 to 2018. The firm's current assets increased by $6.18 million and spontaneous current liabilities increased by $3.82 million. What is Crew Cut's operating cash flow, investment in operating capital and free cash flow for 2018, respectively in millions
Business
1 answer:
forsale [732]2 years ago
7 0

Answer:

See below

Explanation:

•Crew Cut's operating cash flow was;

Operating cash flow = EBIT - Taxes + Depreciation

= $23.18 million - $3.82 million + $7.82 million

= $27.18 million

• Investment in operating capital for 2018

Investment in operating capital = Change in gross fixed assets + Change in net working capital

= $10.18 million + ($6.18 million - $3.82 million)

= $10.18 million + $2.36 million

= $12.54 million

• Free cash flow for 2018

Free cash flow = Operating cash flow - Investment in operating capital

= $27.18 million - $12.54 million

= $14.64 million

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Which of the following is the basis for Justice Ginsberg's opinion that Guido and
ira [324]

Answer:2. Which of the following is the basis for Justice Ginsberg's opinion that Guido and Rankin have legitimate grounds for a lawsuit? The district is a public employer, making its size irrelevant. ... The district has already been sued for the same issue by other former employees.

Explanation:

8 0
2 years ago
Winsted Co. purchased a bond on December 1 of the current year for $ 49 comma 000 and classified the investment as trading. The
Anettt [7]

Answer:

Net income = $3000

C. $ 3 comma 000

Explanation:

For a company, net income is the residual amount of earnings after all expenses have been deducted from sales. In short, gross income is an intermediate earnings figure before all expenses are included, and net income is the final amount of profit or loss after all expenses are included.

In this case.. There is only a buy and a sell trade.

Net income= selling price- cost price

Net income= $52000-$49000

Net income = $3000

4 0
3 years ago
On January 1, Alan King decided to transfer an amount from his checking account into an investment account that later will provi
const2013 [10]

Answer:

The requirement of the question is as below:

How much must Alan deposit on January 1? (Round your final answer to the nearest whole dollar amount.)  

What is the interest for the four years? (Round your final answer to the nearest whole dollar amount.)

Alan deposit on January 1 is $ 58,802.39  

Interest for four years is $21,197.61

Explanation:

The first is asking for today's worth of the investment,which is the amount to be invested,this can be computed using the present value as shown below:

PV=FV*(1+r)^-n

PV is the present value

FV is the worth of the investment in 4 years from now which is $80,000

r is the rate of return of 8%

n is the number of years of investment which is 4 years

PV=$80,000*(1+8%)^-4

PV=$80,0008(1+0.08)^-4

PV=$80,000*(1.08)^-4

PV =$ 58,802.39  

interest for four years=FV-PV

interest for four years=$80,000-$ 58,802.39  

                                    =$21,197.61

4 0
3 years ago
2. The case says that Kayem Foods is not meeting its profit targets. Why is it difficult for this firm to make money in this mar
swat32

Companies often set target for themselves.  The reasons why it is difficult for this firm to make money is that;

  • As a result of poor demand for the products
  • It can be also be like due to the power  or prestige gained over the years by the supermarkets is depreciating.
  • This can be due to the small price margin or the price competition from other manufacturers.
  • Losses encountered via the issue of  Private Label
  • Poor marketing and advertisement strategy and poor budget allocation for it.

Kayem Foods is a very popular brand. It is known to be a 4th generation family owned business. It has it headquartered in Chelsea, MA.

It is commonly known in the world to be the biggest processed meat company that is found in New England.  They are based on natural casing, fully cooked and fresh sausage etc.

Learn more about Food from

brainly.com/question/25884013

3 0
2 years ago
One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second
Phoenix [80]

Answer:

The correct answer is option b.

Explanation:

GDP is a measure of economic growth that shows the level of final goods and services produced in an economy in a year. It includes only final goods and services, intermediate goods are not included.  

So here the value of flour used to make bread will not be included as it is an intermediate good. But the value of bread will be included. The value of the second bag of the floor will be included as it is a final good sold to the consumer.  

Increase in GDP

= $3 + $2

= $5

8 0
2 years ago
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