公司理财 罗斯第十一版 英文 案例解答Corporate_Finance_11th_edition_Case_Solutions.docx

Case SolutionsCorporate FinanceRoss, Westerfield, Jaffe, and Jordan11thedition10/20/2015Prepared by:Brad JordanUniversity of KentuckyJoe SmoliraBelmont UniversityCHAPTER2CASH FLOWS AT WARF COMPUTERSThe operating cash flow for the company is: (NOTE: All numbers are in thousands of dollars)OCF = EBIT + Depreciation – Current taxesOCF = $2,080 + 248 – 605OCF = $1,723To calculate the cash flow from assets, we need to find the capital spending and change in net working capital. The capital spending for the year was:Capital spending?Ending net fixed assets$3,601?– Beginning net fixed assets2,796?+ Depreciation248? Net capital spending$1,053And the change in net working capital was:?Change in net working capital?Ending NWC$1,135?– Beginning NWC914? Change in NWC$221So, the cash flow from assets was:?Cash flow from assets?Operating cash flow$1,723?– Net capital spending1,053?– Change in NWC221? Cash flow from assets$449The cash flow to creditors was:?Cash flow to creditors??Interest paid $137?– Net New Borrowing31? Cash flow to Creditors $106The cash flow to stockholders was:?Cash flow to stockholders??Dividends paid $292?– Net new equity raised– (–51)? Cash flow to Stockholders $343The accounting cash flow statement of cash flows for the year was:?Statement of Cash Flows?Operations?Net income$1,167?Depreciation248?Deferred taxes171?Changes in assets and liabilities? Accounts receivable(48)? Inventories22? Accounts payable34? Accrued expenses(154)? Other(14)?Total cash flow from operations$1,426???Investing activities? Acquisition of fixed assets$(1,482)? Sale of fixed assets429?Total cash flow from investing activities$(1,053)???Financing activities? Retirement of debt $(197)? Proceeds of long-term debt228? Dividends(292)? Repurchase of stock(66)? Proceeds from new stock issues15?Total cash flow from financing activities$(312)???Change in cash (on balance sheet)$61Answers to questions1.The firm had positive earnings in an accounting sense (NI 0) and h