Problem 3.13 – Barrington Industries
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition, 10th Edition, and 11th Edition
Recreate the firm’s cash flow statement and determine the firm’s end-of-year cash balance.
Recreate the firm’s cash flow statement and determine the firm’s end-of-year cash balance.
Presented with two years of balance sheet data and an income statement for the current year…. find the following:
Given an income statement… determine the level of sales that would generate the targeted net income figure that the CEO wishes to achieve.
Given two years worth of balance sheets and an income statement… determine the net operating working capital, the free cash flow, and explain the large increase in dividends.
Given the information on the tax return for the previous year… compute the tax liability, and both the marginal and average tax rates.
Given days sales outstanding, DSO, and annual sales… determine the value of accounts receivable for Baxley Brothers.
Given a market/book ratio, the stock price, the shares of stock outstanding, and total capital… solve for the firm’s debt-to-capital ratio
Given a ROA, a profit margin, and an ROE… determine the total asset turnover and equity multiplier.
Given earnings per share, EPS, book value per share, and a market/book ratio… solve for the firm’s P/E ratio.
Given the profit margin, equity multiplier, sales revenue, and total assets for a particular firm… determine the return on equity, ROE.