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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