标题: FSA Income Statement [打印本页] 作者: Carson 时间: 2013-4-16 13:58 标题: FSA Income Statement
Could anyone help me to interpret the below problem
Baetica Company reported the following selected financial statement data for the year ended December 31, 20X7:
in millions % of Sales
For the year ended December 31, 20X7: $500 100%
Sales
Cost of goods sold (300) 60%
Selling and administration expenses ( 25) 25%
Depreciation (50) 10%
Net income $25 5%
>
As of December 31, 20X7:
Noncash operating working capital a $100 20%
Cash balance $35 N/A
a Noncash operating working capital = Receivables + Inventory – Payables
Baetica expects that sales will increase 20% in 20X8. In addition, Baetica expects to make fixed capital expenditures of $75 million in 20X8. Ignoring taxes, calculate Baetica’s expected cash balance, as of December 31, 2008, assuming all of the commonsize percentages remain constant.
A) $30 million.
B) $40 million.
C) $80 million.作者: xilinx_altera 时间: 2013-4-16 14:01
I think it is A) but I might be wrong, whats the answer?作者: nitoha 时间: 2013-4-16 14:03
40 Mill…作者: HuskyGrad2010 时间: 2013-4-16 14:05
How do you get 40?
Sales will be 600
NI will be 30
add back depreciation which is 60
subtract the increase in working capital which goes up by 20
subract the fixed capital expenditures 75
gives you 5 change in cash. 35 5 = 30
What part am I missing?
