Sheet1

FINANCIAL CASH FLOW PROBLEM
Balance Sheet ($ in Millions) Income Statement ($ in Millions)
Assets 12/31/15 12/31/14 Liabilities and Owners' Equity 12/31/15 12/31/14 Year Ended 12/31/2015
Current Assets Current Liabilities Sales $2,300
Cash $620 $600 Accounts Payable $730 $830 Cost of Goods Sold 1,300
Accounts Receivable 370 400 Notes Payable 590 560 Administrative Expenses 100
Inventory 830 900 Total Current Liabilities $1,320 $1,390 Depreciation 165
Total Current Assets $1,820 $1,900 Long-Term Liabilities Earnings Before Interest and Taxes $735
Long-Term Debt 41 680 Interest Expense 90
Fixed Assets Total Long-Term Liabilities $41 $680 Taxable Income $645
Property, Plant, and Equipment $2,030 $2,100 Taxes 250
Less Accumulated Depreciation 685 520 Owners' Equity Net Income $395
Net Fixed Assests $1,345 $1,580 Common Stock ($1 Par) 840 770
Retained Earnings 964 640 MEMO: Dividends Paid in 2015 $71
Total Owners' Equity $1,804 $1,410
Total Assets $3,165 $3,480 Total Liab. and Owners' Equity $3,165 $3,480
Based on the above balance sheets and income statement, calculate the following
values and financial ratios for the fiscal year 2015: Answer Block Formulas (show work here)
Operating Cash Flow   
Capital Spending
Working capital at 12/31/2015
Change in Working Capital from 2014
Cash Flow to Debt holders
Cash Flow to Stockholders
Inventory turnover to nearest tenth based on average inventory for the year
Cash "freed-up" by increasing inventory turn to 2
Days sales in Receivables (nearest tenth) based on average receivables for the year
Cash "freed-up" by reducing days sales to 45 at 12/31/2015
Note: For all $ calculations, round to the nearest million.

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