Which is calculated as net income from operations

Assignment Help Managerial Accounting
Reference no: EM131001150

Refer to the financial statements and related disclosure notes of Dell Inc. located in the company's annual report for the fiscal year ending January 30, 2009, included with all new copies of the text. You also can locate the report online at www.dell.com.
Notice that Dell's net income has steadily increased over the three years reported. To supplement their analysis of profitability, many analysts like to look at "free cash flow." A popular way to measure this metric is "structural free cash flow" (or as Warren Buffett calls it "owner's earnings"), which is calculated as net income from operations plus depreciation and amortization minus capital expenditures.

Required:

Determine free cash flows for Dell in each of the three years reported. Compare that amount with net income each year. What pattern do you detect? 

Reference no: EM131001150

Questions Cloud

Indicate what happens to demand or supply : Given the products below and the events that affect them, indicate what happens to demand or supply, and the equilibrium price and quantity in a competitive market. Identify the determinant of demand or supply that causes the shift.
How much would the mass of the box increase : Three events occur at the same time in the laboratory frame and at the laboratory coordinates (x0,y1, z1), (x0,y2, z2) and (x0,y1, z3) where x0 has the same value for all three events. Will these three events be simultaneous in a rocket frame movi..
The market is paying producers : March 2016 corn futures are trading at $3.6175/bushel. The market is “paying” producers $0.0975/bushel to store corn to July 1, 2016 (trading at $3.715). How much should the carrying charge be if the monthly storage fee is $0.02/bushel and the averag..
Examine the value and limitations of abc corporation : Propose a taxable acquisition structure for the client's planned acquisitions over a nontaxable reorganization. Assess the value of a taxable transaction over a nontaxable reorganization for the client.
Which is calculated as net income from operations : Determine free cash flows for Dell in each of the three years reported. Compare that amount with net income each year. What pattern do you detect?
Would you be willing to buy the complete insurance coverage : There is a 1 percent chance that you will have healthcare bills of $100,000, a 19 percent chance that you will have healthcare bills of 10,000, a 60 percent chance that you will have healthcare bills of $500, and a 20 percent chance that you will hav..
What are the big ideas about relationships : After reading Standards Juggernaut and Examples of Big Ideas, post your updated template with Big Ideas and Essential Questions included. Check the template before submission to assure that - The Big Idea and Essential Questions are in the correct..
Explain your definition and the effects of hate speech : Explain your definition and the effects of hate speech or indecent content on children (ages 7-17) and on adults (18 +). Discuss your agreement or disagreement with making hate speech a crime
Discuss what the part of the model of the market : Your first paragraph should discuss what the part of the model of the market gave you the biggest fits (but it cannot be "everything"). In this paragraph, include specifics about what it is that you don't understand as well as you would like. 2. In t..

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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