# Sales for 2011 were \$455,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and - 13945

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(in thousands of dollars)
2011 2010
Assets
Cash       102850 89725   13125
Accounts receivable     103365 85527   17838
Inventories       38444 34982   3462
Total current assets     244659 210234   34425
Net fixed assets     67165 42436   24729
Total assets       311824 252670   59154

Liabilities and equity
Accounts payable     30761 23109   7652
Accruals       30477 22656   7821
Notes payable       16717 14217   2500
Total current liabilities     77955 59982   17973
Long-term debt     76264 63914   12350
Total liabilities     154219 123896   30323
Common stock     100000 90000   10000
Retained earnings     57605 38774   18831
Total common equity     157605 128774   28831
Total liabilities and equity     311824 252670   59154

a.   Sales for 2011 were \$455,150,000, and EBITDA was 15% of sales.  Furthermore, depreciation and
amortization were 11% of net fixed assets, interest was \$8,575,000, the corporate tax
rate was 40%, and Laiho pays 40% of its net income as dividends.  Given this information,
construct the firm’s 2011 income statement.

b.   Construct the statement of stockholders' equity for the year ending December 31, 2011,

c.   Calculate the 2011 statement of cash flows

d.   Calculate 2010 and 2011 net operating working capital (NOWC) and 2011 free cash flow (FCF), using the following formulas

Net Operating Working Capital (must be financed by external sources)
NOWC = Current assets (Current liabilities Notes payable)

Free Cash Flow
FCF = EBIT (1 T) + Depreciation Capital expenditures + Increase in NOWC

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