Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
9th Edition
ISBN: 9781259277214
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, Problem 19QP
Net Income and OCF. During the year, Belyk Paving Co. had sales of $2,350,000. Cost of goods sold, administrative and selling expenses, and
a. What is the company’s net income?
b. What is its operating cash flow?
c. Explain your results in parts (a) and (b).
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Net Income and OCF During the year, BelykPaving Co. had sales of $2,600,000.Cost of goods sold.administrative and sellingexpenses,and depreciationexpense were $1,535,000，$465,000，and $520.000respectively. In addition,the company had an interesexpense of $245,000 and a tax rate of 35 percent. (lgnoreany tax loss carryback or carryforward provisions.忽略税收)a. What is the company's net income?b. What is its operating cash flow?c.Explain your results in parts (a) and (b).
During the year, Belyk Paving Co. had sales of $2,600,000. Cost of goods sold,
administrative and selling expenses, and depreciation expense were $1,535,000,
$465,000, and $520,000, respectively. In addition, the company had an interest
expense of $245,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or
carryforward provisions.) (Enter your answer as directed, but do not round
intermediate calculations.)
Required:
(a) What is Belyk's net income? (Negative amount should be indicated by a minus
sign.)
Net income
(b) What is Belyk's operating cash flow?
Operating cash flow
A
During the year, Belyk Paving Co. had sales of $2,575,000. Cost of goods sold,
administrative and selling expenses, and depreciation expense were $1,367,000,
$690,000, and $480,000, respectively. In addition, the company had an interest
expense of $305,000 and a tax rate of 25 percent. (Ignore any tax loss or carryforward
provision and assume interest expense is fully deductible.)
a. What is the company's net income? (A negative answer should be indicated by a
minus sign. Do not found intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
b. What is its operating cash flow? (Do not round intermediate calculations and round
your answer to the nearest whole number, e.g., 32.)
a.
Net income
b. Operating cash flow
Chapter 2 Solutions
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Ch. 2.1 - Prob. 2.1ACQCh. 2.1 - Prob. 2.1BCQCh. 2.1 - What do we mean by financial leverage?Ch. 2.1 - Explain the difference between accounting value...Ch. 2.2 - What is the income statement equation?Ch. 2.2 - What are the three things to keep in mind when...Ch. 2.2 - Why is accounting income not the same as cash...Ch. 2.3 - What is the difference between a marginal and an...Ch. 2.3 - Do the wealthiest corporations receive a tax break...Ch. 2.4 - Prob. 2.4ACQ
Ch. 2.4 - Prob. 2.4BCQCh. 2.4 - Why is interest paid not a component of operating...Ch. 2 - What is the relationship between current assets...Ch. 2 - What is the purpose of the income statement?Ch. 2 - Prob. 2.3CCh. 2 - Prob. 2.4CCh. 2 - Liquidity. What does liquidity measure? Explain...Ch. 2 - Accounting and Cash Flows. Why is it that the...Ch. 2 - Book Values versus Market Values. In preparing a...Ch. 2 - Prob. 4CTCRCh. 2 - Prob. 5CTCRCh. 2 - Prob. 6CTCRCh. 2 - Prob. 7CTCRCh. 2 - Net Working Capital and Capital Spending. Could a...Ch. 2 - Prob. 9CTCRCh. 2 - Firm Values. Referring back to the examples used...Ch. 2 - Building a Balance Sheet. Bear Tracks, Inc., has...Ch. 2 - Building an Income Statement. Pharrell, Inc., has...Ch. 2 - Dividends and Retained Earnings. Suppose the firm...Ch. 2 - Per-Share Earnings and Dividends. Suppose the firm...Ch. 2 - Prob. 5QPCh. 2 - Tax Rates. In Problem 5, what is the average tax...Ch. 2 - Calculating OCF. Hailey, Inc., has sales of...Ch. 2 - Prob. 8QPCh. 2 - Calculating Additions to NWC. The December 31,...Ch. 2 - Cash Flow to Creditors. The December 31, 2015,...Ch. 2 - Cash Flow to Stockholders. The December 31, 2015,...Ch. 2 - Prob. 12QPCh. 2 - Market Values and Book Values. Klingon Widgets,...Ch. 2 - Prob. 14QPCh. 2 - Using Income Statements. Given the following...Ch. 2 - Prob. 16QPCh. 2 - Prob. 17QPCh. 2 - Prob. 18QPCh. 2 - Net Income and OCF. During the year, Belyk Paving...Ch. 2 - Prob. 20QPCh. 2 - Prob. 21QPCh. 2 - Prob. 22QPCh. 2 - Prob. 23QPCh. 2 - Net Fixed Assets and Depreciation. On the balance...Ch. 2 - Tax Rates. Refer to the corporate marginal tax...Ch. 2 - Prob. 1CCCh. 2 - Prob. 2CC
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