Firm reduced its net working capital investment

Assignment Help Financial Management
Reference no: EM131012318

The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $5.5 million, and the 2015 balance sheet showed long-term debt of $5.7 million. The 2015 income statement showed an interest expense of $180,000. During 2015, the company had a cash flow to creditors of -$20,000 and the cash flow to stockholders for the year was $60,000. Suppose you also know that the firm’s net capital spending for 2015 was $1,400,000, and that the firm reduced its net working capital investment by $75,000. What was the firm’s 2015 operating cash flow, or OCF?

Reference no: EM131012318

Questions Cloud

How much value will be forgone : Poston Inc. is considering Projects S and L whose cash flows are shown below. These projects are mutually exclusive (must choose one or the other) equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR,..
Find dimensions of channel for least expenditure of energy : A trapezoidal channel having side slopes of 2 horizontal and 1 vertical discharges 14.35 m3/s of water at a velocity of 1.0m/s. The channel lining has a roughness coefficient, n = 0.013. Find the dimensions of the channel for the least expenditure..
What is your annual payment to big attitude : You are borrowing money to buy your first house that costs $350,000. You go to the first bank you see, Big Attitude Bank, and they are charging 4.25% interest. What is your annual payment to Big Attitude? What is your annual payment to Super Cheap Ba..
How many edges does an n-cube have : How many edges does an n-cube have? Give your reason. How many (main) diagonals does a 4-dim cube have? Are any two of them perpendicular to each other?
Firm reduced its net working capital investment : The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $5.5 million, and the 2015 balance sheet showed long-term debt of $5.7 million. The 2015 income statement showed an interest expense of $180,000. Suppose you also know ..
Determine if the flow is turbulent or laminar : A trapezoidal channel with bottom width b = 5 ft and side slopes m = 2 (that is 2 horizontal over 1 vertical) carries Q = 100 cfs at depth y = 3.15 ft. The water temperature is 60 F, and the kinematic viscosity at this temperature is v = 1.217 * 1..
Assume that two investments are combined in a portfolio : Assume that two investments are combined in a portfolio. In words, what is the expected rate of return on the portfolio? What condition must be present for the portfolio to have lower risk than the weighted average of the two investments? Is it possi..
Expected and required rates of return : Assume that the risk-free rate is 7% and the market risk premium is 4%. What is the expected return for the overall stock market? What is the required rate of return on a stock with a beta of 1.1?
What are the strengths of this theory : In what ways does this particular theory explain crime that occurs in other countries around the world?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the expected return of portfolio

Calculate the expected return of portfolio

  Compute the wac breakpoint associated with raising new funds

Emma Inc.’s capital structure consists of 30 percent debt and 70 percent common equity. According to its investment banker, Emma Inc. can issue up to $240,000 new debt at a 3.8 percent cost; for any amount of new debt greater than $240,000, the cost ..

  Estimate the adjusted return on capital for the firm

You have been asked to estimate the expected free cash flow to the firm next year of Lymon Enterprises, a beverage company. The earnings before interest and taxes in the most recent year amounted to $ 150 million. The tax rate of the firm is 40%. Est..

  Initial cost and salvage value projections are accurate

Consider a project to supply Detroit with 31,000 tons of machine screws annually for automobile production. You will need an initial $1,333,000 investment in threading equipment to get the project started; the project will last for 6 years. Suppose y..

  What is the cost of capital on the stock

Horse and Buggy Inc. is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 10% per year. if r = 15% and DIV1 = $4, what is the price of a share? What price do you forecast for the stock one year from now? What is t..

  About the certificate of deposit

Kyle has $1,000 in cash received for high school graduation gifts from various relatives. He wants to invest it in a certificate of deposit (CD) so that he will have a down payment on a car when he graduates from college in five years. His bank will ..

  What is the current market rate on this bond

A 25-year bond was issued eight years ago. The bond pays an annual coupon rate (once a year) of 8.75%. Currently, the bond sells for $1,210. What is the current market rate on this bond?

  What would be the dollar value of depreciation your company

On February 22, 2009, your company bought office furniture for $35,000. According to the accounting rules everyone must play by, what would be the dollar value of depreciation your company could take in the following years assuming they use MACRS and..

  Create a technology stock index

Suppose you need to create a technology stock index. You are not sure if you should do a market cap weighted index or a price weighted index. You will use 2 stocks to make this index:

  Two bookstores are competing for customers

Two bookstores are competing for customers. Both bookstores can decide to offer discounts to attract more customers. Bookstore-A has a 30% probability of offering a discount. The probability that Bookstore-B will offer a discount is unknown, and is r..

  Assigned to the press as an initial cost of the new project

The Tattle Teller has a printing press sitting idly in its back room. The press has no market value to another printer because the machine utilizes old technology. The firm could get $250 for the press as scrap metal. What value, if any, should be as..

  How much would the annual payments be

Darshak won a $1,000,000 lottery which will pay $5,000 at the beginning of each month for the next 30 years. If the payments were made at the beginning of each year for the next 30 years rather than at the beginning of each month, how much would the ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd