CorporateFinance11theditionCaseSolutions公司理财罗斯第十一版英文案例解答100.docx

C- PAGE 3 CASE SOLUTIONS Case Solutions Corporate Finance Ross, Westerfield, Jaffe, and Jordan 11th edition 10/20/2015 Prepared by: Brad Jordan University of Kentucky Joe Smolira Belmont University   C- PAGE 2 CASE SOLUTIONS C- PAGE 3 CASE SOLUTIONS CHAPTER 2 CASH FLOWS AT WARF COMPUTERS The operating cash flow for the company is: (NOTE: All numbers are in thousands of dollars) OCF = EBIT + Depreciation – Current taxes OCF = $2,080 + 248 – 605 OCF = $1,723 To 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 assets 2,796 ? + Depreciation 248 ? Net capital spending $1,053 And the change in net working capital was: ? Change in net working capital ? Ending NWC $1,135 ? – Beginning NWC 914 ? Change in NWC $221 So, the cash flow from assets was: ? Cash flow from assets ? Operating cash flow $1,723 ? – Net capital spending 1,053 ? – Change in NWC 221 ? Cash flow from assets $449 The cash flow to creditors was: ? Cash flow to creditors ? ? Interest paid $137 ? – Net New Borrowing 31 ? Cash flow to Creditors $106  The cash flow to stockholders was: ? Cash flow to stockholders ? ? Dividends paid $292 ? – Net new equity raised – (–51) ? Cash flow to Stockholders $343 The accounting cash flow statement of cash flows for the year was: ? Statement of Cash Flows ? Operations ? Net income $1,167 ? Depreciation 248 ? Deferred taxes 171 ? Changes in assets and liabilities ? Accounts receivable (48) ? Inventories 22 ? Accounts payable 34 ? Accrued expenses (154) ? Other (14) ? Total cash flow from operations $1,426 ? ? ? Investing activities ? Acquisition of fixed assets $(1,482) ? Sale of fixed assets 429 ? Total cash flow from investing activities $(1,053) ? ? ? Financing activities ? Retirement of debt $(197) ? Proceeds of long-term debt 2