Corporate Finance Math Problem Example | Topics and Well Written Essays - 2000 words

Corporate Finance - Math Problem ExampleLiabilities on the other side also increased due to the expansion, while the equity deteriorated little bit in the year 2007 by 0.106 million because of the net passing game of the company.Ans-2) Cash flow statement shows that the account receivable head of the company was increased with a rapid pace in the year 2007, which showed that the company was baffling in credit sales. Cash flow statement also showed that the company spent $0.711 million to acquire the fixed assets during expansion of their network.The currency flow visible(prenominal) to be distributed among the shareholders after the company has made all the investment in working capital and fixed assets to enhance the ongoing operation is called free property flow (FCF).Ans-4) The assets which are employ in the operation of the business like inventory, long term operation assets and plant & Equipment are known as operating(a) current assets. By contrast, the pedigree which com es from the suppliers and reported as account payable, accrued wages and accrued taxes are referred to as operating current liabilities.Since both the ... o be distributed among the shareholders after the company has made all the investment in working capital and fixed assets to enhance the ongoing operation is called free cash flow (FCF).USES OF FCFIt is used toPay interest to debt holders.Pay dividends to shareholders.Repurchase stocks from the shareholders.Repay debt holders, which had been paid partially before.Buy marketable securities or other non-operating assets.Ans-4) The assets which are used in the operation of the business like inventory, long term operation assets and plant & Equipment are known as operating current assets. By contrast, the fund which comes from the suppliers and reported as account payable, accrued wages and accrued taxes are referred to as operating current liabilities.Net direct Working Capital 2007 $operating(a) Current Assets (Cash+Account Receiva ble inventories)1926802 operate Current Liability (Account Payables + Accruals)608960Net run Working Capital (operating(a) Current Assets - Operating Current Liabilities)1317842Net Operating Working Capital 2006 $Operating Current Assets (Cash+Account Receivable+ inventories)1075400Operating Current Liability (Account Payables + Accruals)281600Net Operating Working Capital (Operating Current Assets - Operating Current Liabilities)793800Total Net Operating Capital 2007 $Net Operating Working Capital (NOWC)1317842Operating Long Term Assets (OLTA)939790Total Net Operating Capital (NOWC - OLTA)2257632Total Net Operating Capital 2006 $Net Operating Working Capital793800Operating Long Term Assets344800Total Net Operating Capital1138600Ans-5) Net Operating Profit After Tax (NOPAT) $20072006Earning Before Interest and Taxes (EBIT)(158560)146600Tax Rate = 40%0.40.4NOPAT