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FCF_11th_edition_Chapter_02_Problem_4_template.xlsx
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Chapter 2

Chapter 2
Problems 2, 3, 4, 6, 7, 14, 15, 19
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
NOTE: Some functions used in these spreadsheets may require that
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To install these, click on the Office button
then "Excel Options," "Add-Ins" and select
"Go." Check "Analyis ToolPak" and
"Solver Add-In," then click "OK."

#4

Chapter 2
Question 4
Input area:
Sales
Costs
Depreciation expense
Interest expense
Tax rate
Cash dividends
Shares outstanding
Output area:
Income Statement
Sales $ - 0
Costs -
Depreciation expense - 0
EBIT $ -
Interest expense -
EBT $ - 0
Taxes (0%) -
Net income $ - 0
Addition to retained earnings $ - 0
Earnings per share ERROR:#DIV/0!
Dividends per share ERROR:#DIV/0!

#6

Chapter 2
Question 6
Input area:
Taxable income
Taxable income
0 - 50,000 15%
50,001 - 75,000 25%
75,001 - 100,000 34%
100,001 - 335,000 39%
335,001 - 10,000,000 34%
10,000,001 - 15,000,000 35%
15,000,001 - 18,333,333 38%
18,333,334 + 35%
Output area:
Taxes:
15% $ 50,000
25% (50,000)
34% 0
39% 0
34% 0
35% 0
38% 0
35% 0
The marginal tax rate is 15%

#7

Chapter 2
Question 7
Input area:
Sales
Costs
Depreciation Expense
Interest Expense
Tax rate
Output area:
Income Statement
Sales $ - 0
Costs -
Depreciation expense - 0
EBIT $ -
Interest expense -
EBT $ - 0
Taxes (0%) -
Net income $ - 0
Operating cash flow $ - 0

#14

Chapter 2
Question 14
Input area:
Sales
Costs
Other expenses
Depreciation expense
Interest expense
Taxes
Dividends
2015 New equity
Net new long-term debt
Change in fixed assets
Output area:
Income Statement
Sales $ - 0
Costs -
Other expenses - 0
Depreciation expense - 0
EBIT $ -
Interest expense -
EBT $ - 0
Taxes -
Net income $ - 0
Dividends $ - 0
Addition to retained earnings $ - 0
a. Operating cash flow $ - 0
b. Cash flow to creditors $ - 0
c. Cash flow to stockholders $ - 0
d. Cash flow from assets $ - 0
Net capital spending $ -
Change in NWC $ - 0

#15

Chapter 2
Question 15
Input area:
Sales
Costs
Addition to retained earnings
Dividends paid
Interest expense
Tax rate
Output area:
Income Statement
Sales $ - 0
Costs -
Depreciation expense $ - 0
EBIT $ -
Interest expense -
EBT $ - 0
Taxes - 0
Net income $ - 0
Dividends $ - 0
Addition to retained earnings $ - 0

#19

Chapter 2
Question 19
Input area:
Sales
Costs
Administrative and selling expenses
Depreciation expense
Interest expense
Tax rate
Output area:
Income Statement
Sales $ - 0
Costs -
Administrative and selling expenses -
Depreciation expense - 0
EBIT $ -
Interest expense -
EBT $ - 0
Taxes (0%) 0
a. Net income $ - 0
b. Operating cash flow $ - 0
c. Net income was negative because of the tax deductibility and
interest expense. However, the actual cash flow from operations
was positive because depreciation is a non-cash expense and
interest is a financing expense, not an operating.