Zumbahlen Inc. has the following balance sheet. Its EBIT is $300 and tax rate is 40%. Also, the weighted averag cost of capital of Jumbahlen Inc. is 10%. 1. How much total net operating capital does the firm have? 2. Calculate the Economic Value Added (EVA).
|
Cash
|
20
|
Accounts payable
|
30
|
|
Short-term investments
|
50
|
Accruals
|
50
|
|
Accounts receivable
|
20
|
Notes payable
|
30
|
|
Inventory
|
60
|
Current liabilities
|
110
|
|
Current assets
|
150
|
|
|
|
Long-term debt
|
70
|
|
|
|
Gross fixed assets
|
140
|
Common stock
|
30
|
|
Accumulated deprec.
|
40
|
Retained earnings
|
40
|
|
Net fixed assets
|
100
|
Total common equity
|
70
|
|
Total assets
|
250
|
Total liab. & equity
|
250
|