Thursday, December 8, 2011

Free Cash Flow- Show work for a,b,c?

Bailey Corporation's financial statements ( dollars and shares are in millions ) are provided here.


balance sheet as of december 31


2008 2007


asset


cash and equivalents $14,000 $13,000


account receivable 30,000 25,000


Inventories 28,125 21,000


Total current asset $72,125 $59,000


net plant and equipment 50,000 47,000


total asset $122,125 $106,000


Liabilities and equity


Account payable $10,800 $9,000


notes payable 6,700 5,150


accruals 7,600 6,000


total current liabilities $25,100 $20,150


long-term bonds 15,000 15,000


total debt $40,100 $35,150


common stock (5,000 shares) 50,000 50,000


Retained earnings 32,025 20,850


commmon equity $82,025 $70,850


total liabilities and equity $122,125 $106,000


income statement for year ending december 31,2008


sales 庐 玫 p %26amp;x .Hm p; $214,000


operating costs excluding depreciation and amortization 170,000


EBITDA $44,000


Depreciation %26amp; amortization 5,000


EBIT $39,000


interest 1,750


EBT $37,250


Taxes(40%) 14,900


net income $ 22.350


dividents paid $11,175


a. what was net working capital for 2007 and 2008?


b. what was bailey's 2008 free cash flow?


c. construct bailey's 2008 statement of stockholders' equity.|||Hmmmm interesting. http://getrichesradio.com

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