Finance & Accounting

Module4CashFlowAssignment-3.xlsx

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Sheet1

FINANCIAL CASH FLOW PROBLEM
Balance Sheet ($ in Millions)						Income Statement ($ in Millions)
Assets	12/31/15	12/31/14	Liabilities and Owners' Equity	12/31/15	12/31/14		Year Ended 12/31/2015
Current Assets			Current Liabilities			Sales	$2,300
Cash	$620	$600	Accounts Payable	$730	$830	Cost of Goods Sold	1,300
Accounts Receivable	370	400	Notes Payable	590	560	Administrative Expenses	100
Inventory	830	900	Total Current Liabilities	$1,320	$1,390	Depreciation	165
Total Current Assets	$1,820	$1,900	Long-Term Liabilities			Earnings Before Interest and Taxes	$735
			Long-Term Debt	41	680	Interest Expense	90
Fixed Assets			Total Long-Term Liabilities	$41	$680	Taxable Income	$645
Property, Plant, and Equipment	$2,030	$2,100				Taxes	250
Less Accumulated Depreciation	685	520	Owners' Equity			Net Income	$395
Net Fixed Assests	$1,345	$1,580	Common Stock ($1 Par)	840	770
			Retained Earnings	964	640	MEMO: Dividends Paid in 2015	$71
			Total Owners' Equity	$1,804	$1,410
Total Assets	$3,165	$3,480	Total Liab. and Owners' Equity	$3,165	$3,480
Based on the above balance sheets and income statement, calculate the following
values and financial ratios for the fiscal year 2015:		Answer Block	Formulas (show work here)
Operating Cash Flow
Capital Spending
Working capital at 12/31/2015
Change in Working Capital from 2014
Cash Flow to Debt holders
Cash Flow to Stockholders
Inventory turnover to nearest tenth based on average inventory for the year
Cash "freed-up" by increasing inventory turn to 2
Days sales in Receivables (nearest tenth) based on average receivables for the year
Cash "freed-up" by reducing days sales to 45 at 12/31/2015
Note: For all $ calculations, round to the nearest million.