Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 2, Problem 25QP
Use the following information for Taco Swell, Inc., for Problems 25 and 26 (assume the tax rate is 34 percent):
| 2014 | 2015 | |
| Sales | $12,730 | $ 14,229 |
| 1,827 | 1,910 | |
| Cost of goods sold | 4,377 | 5,178 |
| Other expenses | 1,041 | 906 |
| Interest | 854 | 1,019 |
| Cash | 6,674 | 7,113 |
| Accounts receivable | 8,837 | 10,371 |
| Short-term notes payable | 1,288 | 1,262 |
| Long-term debt | 22,352 | 27,099 |
| Net fixed assets | 55,977 | 59,700 |
| Accounts payable | 4,822 | 5,108 |
| Inventory | 15,711 | 16,817 |
| Dividends | 1,522 | 1,780 |
25. Financial Statements [LO1] Draw up an income statement and
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Use the following information for Ingersoll, Inc., (assume the tax rate is 35 percent):
2015
2014
$9,335 $9,909
Sales
Depreciation
Cost of goods sold
Other expenses
Interest
Cash
Accounts receivable
Short-term notes
payable
Long-term debt
Net fixed assets
Accounts payable
Inventory
Dividends
1,275
2,846
789
675
4,259
5,589
944
1,276
3,210
684
753
15,110
35,955 37,077
Cash flow from assets
Cash flow to creditors
Cash flow to stockholders
5,353
6,277
896
17,550
4,616 4,335
10,088
9,820
1,106
1,201
For 2015, calculate the cash flow from assets, cash flow to creditors, and cash flow to
stockholders. (Do not round intermediate calculations. A negative answer should be
indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.)
$
$
$
Use the following information for Ingersoll, Incorporated. Assume the tax rate is 23
percent.
Sales
Depreciation
2020 2021
$15,073 $15,036
1,731 1,806
Cost of goods sold
4,329
4,777
Other expenses
981
859
Interest
830
961
Cash
6,172
6,676
Accounts receivable
8,110
9,637
Short-term notes payable
1,240
1,217
Long-term debt
20,530
24,811
Net fixed assets
51,042 54,483
Accounts payable
4,496 4,854
Inventory
14,402 15,358
1,300
1,688
Dividends
Prepare a balance sheet for this company for 2020 and 2021. (Do not round
intermediate calculations.)
INGERSOLL, INCORPORATED
Balance Sheet as of December 31
Current assets
Assets
2020
2021
Use the following information for Taco Swell, Incorporated, (assume the tax rate is 24
percent):
Sales
Depreciation
Cost of goods sold
Other expenses
Interest
Cash
Accounts receivable
Short-term notes payable
Long-term debt
Net fixed assets
Accounts payable
Inventory
Dividends
2020
$18,549
Cash flow from assets
Cash flow to creditors
Cash flow to stockholders
2,416
5,890
1,371
1,130
8,696
11,528
1,714
29,180
72,861
6,293
20,492
2,179
2021
$18,888
2,524
6,771
1,198
1,345
9,367
13,602
1,681
35,329
77,730
6,760
21,902
2,354
For 2021, calculate the cash flow from assets, cash flow to creditors, and cash flow to
stockholders. (A negative answer should be indicated by a minus sign. Do not round
intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Chapter 2 Solutions
Fundamentals of Corporate Finance
Ch. 2.1 - Prob. 2.1ACQCh. 2.1 - What is liquidity? Why is it important?Ch. 2.1 - What do we mean by financial leverage?Ch. 2.1 - Explain the difference between accounting value...Ch. 2.2 - What is the income statement equation?Ch. 2.2 - Prob. 2.2BCQCh. 2.2 - Why is accounting income not the same as cash...Ch. 2.3 - What is the difference between a marginal and an...Ch. 2.3 - Do the wealthiest corporations receive a tax break...Ch. 2.4 - Prob. 2.4ACQ
Ch. 2.4 - Prob. 2.4BCQCh. 2.4 - Why is interest paid not a component of operating...Ch. 2 - What types of accounts are the most liquid?Ch. 2 - What is an example of a noncash expense?Ch. 2 - The marginal tax rate is the tax rate which...Ch. 2 - Prob. 2.4CTFCh. 2 - Prob. 1CRCTCh. 2 - Accounting and Cash flows [LO2] Why might the...Ch. 2 - Prob. 3CRCTCh. 2 - Operating Cash Flow [LO2] In comparing accounting...Ch. 2 - Prob. 5CRCTCh. 2 - Cash Flow from Assets [LO4] Suppose a companys...Ch. 2 - Prob. 7CRCTCh. 2 - Net Working Capital and Capital Spending [LO4]...Ch. 2 - Prob. 9CRCTCh. 2 - Prob. 10CRCTCh. 2 - Prob. 11CRCTCh. 2 - Earnings Management [LO2] Companies often try to...Ch. 2 - Building a Balance Sheet [LO1] KCCO, Inc., has...Ch. 2 - Building an Income Statement [LO1] Billys...Ch. 2 - Dividends and Retained Earnings [LO1] Suppose the...Ch. 2 - Prob. 4QPCh. 2 - Calculating Taxes [LO3] The Dyrdek Co. had 267,000...Ch. 2 - Prob. 6QPCh. 2 - Calculating OCF [LO4] Ridiculousness, Inc., has...Ch. 2 - Calculating Net Capital Spending [LO4] Bowyer...Ch. 2 - Calculating Additions to NWC [LO4] The 2014...Ch. 2 - Cash Flow to Creditors [LO4] The 2014 balance...Ch. 2 - Cash Flow to Stockholders [LO4] The 2014 balance...Ch. 2 - Prob. 12QPCh. 2 - Market Values and Book Values [LO1] Klingon...Ch. 2 - Prob. 14QPCh. 2 - Using Income Statements [LO1] Given the following...Ch. 2 - Preparing a Balance Sheet [LO1] Prepare a 2015...Ch. 2 - Prob. 17QPCh. 2 - Prob. 18QPCh. 2 - Net Income and OCF [LO2] During 2014, Raines...Ch. 2 - Prob. 20QPCh. 2 - Prob. 21QPCh. 2 - Calculating Cash Flows [LO4] Consider the...Ch. 2 - Net Fixed Assets and Depreciation [LO4] On the...Ch. 2 - Prob. 24QPCh. 2 - Use the following information for Taco Swell,...Ch. 2 - Use the following information for Taco Swell,...Ch. 2 - Prob. 1MCh. 2 - Prob. 2M
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