Fin200

FIN-200/BFM-105 Assignment-1 Submission due on: October 10, 2011

Question-1. Abdullah Brothers reported an EBITDA of $7.5million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax was 35% . What was its charge for depreciation and amortization?

Q2. In its most recent financial statements, Newhouse Inc reported $50million of net income and $810 million of retained earnings. The previous retained earnings were $780 million. How much was paid to shareholders in dividend during the year.

Q3. MYC had AED55000 cash at the year-end 2007 and AED 25, 000 in cash at the yearend 2008. Cash flow from long-term investing activities totaled AED -250,000 and cash flow from financing activities totaled AED + 170,000.

a) What was the cash flow from operating activities?

b) If accruals & A/P increased by 25,000, and receivables and inventories increased by 100,000, and depreciation and amortization totaled 10,000 what was the firm’s net income?

BALANCE SHEET of Company X AS OF DECEMBER 31, 2010 |

Assets | 2010 | 2009 |

Cash and cash equivalents | 14000 | 13,000 |

Accounts Receivable | 30,000 | 25,000 |

Inventories | 28,125 | 21,000 |

Total Current assets | 72,125 | 59,000 |

Net Plant and Equipment | 50,000 | 47,000 |

Total Assets | 122,125 | 106,000 |

Liabilities and Equity | | |

Accounts Payable | 10,800 | 9,000 |

Notes payable | 6,700 | 5,150 |

Accruals | 7,600 | 6,000 |

Total Current Liabilities | 25,120 | 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 |

Common Equity | 82,025 | 70,850 |

Total Liabilities and Equity | 122,125 | 106,000 |

Q4.

  |   |   |   |

Income Statement For the Year Ending DECEMBER 31, 2010 |

Sales | | 214,000 |   |

COGS | | 170,000 |   |

EBITDA | | 44,000 |   |

Depreciation & Amortization | | 5,000 |   |...