|
Galaxy Interiors
2011 Income Statement
(5 in millions)
|
|
Net sales
|
Suits
|
|
Cost of goods sold
|
16,408
|
|
Deprecation
|
1,611
|
|
Earnings before interest and taxes
|
3,396
|
|
Interest paid
|
1,282
|
|
Taxable Income
|
$2,114
|
|
Less: Taxes
|
740
|
|
Net income
|
$1,374
|
|
Galaxy Interiors
2010 and 2011 Balance Sheets
($ in millions)
|
|
|
2010
|
2011
|
|
2010
|
2011
|
|
Cash
|
$668
|
$297
|
Accounts payable
|
$1,694
|
1,572
|
|
Accounts receivable
|
1,611
|
1,527
|
Notes payable
|
2,500
|
0
|
|
Inventory
|
3,848
|
2,947
|
Total
|
$4,194
|
$1,532
|
|
Total
|
$6,127
|
$4,771.00
|
Long-term debt
|
9,800
|
10,650
|
|
Net fixed asses
|
17,489
|
17,107
|
Common stock
|
7,500
|
7,000
|
|
|
|
|
Retained earnings
|
2,122
|
2,696
|
|
Total assets
|
$23,616
|
$21,878
|
Total liab. & equity
|
$23,616
|
$21,878
|
1. What is the operating cash flow for 2011? OCF in 2011 = EBIT + DEPRECIATION - TAX
2. What is the amount of net capital spending for 2011? Net capital spending = Fixed asset in 2011 - Fixed asset in 2010 + Depreciation in 2011
3. What is the net investment on working capital in 2011 (Change in net working capital)?
Change in NWC = NWC in 2011 - NWC in 2010 = (CA in 2011 - CL in 2011) - ( CA in 2010 - CL in 2010)
4. What is the cash flow from assets for 2011?
Cash flow from assets = OCF - Net capital spending - Change in NWC
5. What is the cash flow to creditors in 2011?
Cash flow to creditors = interest expense in 2011 - (long term debt in 2011 - long term debt in 2010)
6. What is the cash flow to stockholders in 2011? cash flow to stockholders = cash flow from asset - cash flows to creditors