Premium Essay

Fin370 Week 4

In: Business and Management

Submitted By Meylinnn
Words 291
Pages 2
CH 10
Integrative Problem: Caledonia
CAPEX $8,000,000
Straight line depreciation
Depreciation expense per year $1,600,000
Pro Forma 1 Pro Forma 2 Pro Forma 3
Sales $21,000,000 Sales $36,000,000 Sales $42,000,000
Variable Cost 12,600,000 Variable Cost 21,600,000 Variable Cost 25,200,000
Fixed Cost 200,000 Fixed Cost 200,000 Fixed Cost 200,000
Depreciation 1,600,000 Depreciation 1,600,000 Depreciation 1,600,000
EBIT 6,600,000 EBIT 12,600,000 EBIT 15,000,000
Tax(34%) 2,244,000 Tax(34%) 4,284,000 Tax(34%) 5,100,000
Net Income $4,356,000 Net Income $8,316,000 Net Income $9,900,000
OCF 1= $5,956,000 OCF 2= $9,916,000 OCF 3= $11,500,000
Pro Forma 4 Pro Forma 5
Sales $24,000,000 Sales $15,600,000
Variable Cost 14,400,000 Variable Cost 10,800,000
Fixed Cost 200,000 Fixed Cost 200,000
Depreciation 1,600,000 Depreciation 1,600,000
EBIT 7,800,000 EBIT 3,000,000
Tax(34%) 2,652,000 Tax(34%) 1,020,000
Net Income $5,148,000 Net Income $1,980,000
OCF 4= $6,748,000 OCF 5= $3,580,000
Year
0 1 2 3 4 5
OCF 0 $5,956,000 $9,916,000 $11,500,000 $6,748,000 $3,580,000
Capex -8,000,000 0 0 0 0 0
Changes in NWC -100,000 -2,100,000 -3,600,000 -4,200,000 -2,400,000 12,400,000
Total ($8,100,000) $3,856,000 $6,316,000 $7,300,000 $4,348,000 $15,980,000
NCF=...

Similar Documents

Premium Essay

Finacial Terms and Goals

...Week 1 Financial Terms and Roles FIN370 January 14, 2014 Week 1 Financial Terms and Roles 1) Finance Finance is considers the management of how income acquired and used. Whether dealing with corporate or personal issues, finance may consist of how individual or business acquires, invest, and manage money. Financial decisions are the role finance plays, which consist of money as the resource and how and the source of how the organization obtain the revenue. 2) Efficient Market Efficient markets are a hypothesis that prices in a market are continually fair. This consists of incorporated market prices reflecting associated information completely. Keeping values current is the role efficient markets play by keeping market price fair and prohibiting anyone to make a high returns unless he or she buys a much high risk investment. 3) Primary Market A primary market is a marketplace where securities are distributed for the first time. The government, businesses, and other groups issue debt or equity-based securities permissible to raising finance. In primary market prices are the same for every buyer; however, investors in a primary market do not purchase securities from other investors. 4) Secondary Market A Secondary Markets is a marketplace where securities that already issued are sold or purchased by investors. Prices in a secondary market vary from the issue price and prices can vary from the original cost, although prices are affected by market......

Words: 844 - Pages: 4

Premium Essay

Wk 5 Marketing 421

...Starbucks Coffee Team “A” Fin370 Shawn Gover April 4, 2012 Starbucks started as a single store in Seattle back in 1971, with a single goal in mind; to share good coffee with their friends and just to make the world a little better place. Howard Schultz, the chairman, president, and chief executive officer, had a vision to bring back the tradition of an Italian coffeehouses back into the United States. He wanted to bring his consumers a place for conversation, a sense of community, just a place between work and home. Today Starbucks Coffee has more than 15,000 stores in 50 countries and has set out to be a different kind of company; a company who’s invested in tradition and a feeling of connection with there consumers. Starbucks believe that in order to have a success for the company they need to do the right thing, they need to be ethical and compliant. They have implemented a program with the company that helps to support Starbucks mission and protect the culture throughout the company they worked so hard to establish. Through the program, employees of Starbucks, have availability to materials that will help inform employees on how to make the correct and ethical decision. The materials include, awareness materials, including the Standards of Business Conduct, facilitates legal compliance and ethics training, investigates sensitive issues such as potential conflicts of interest, and provides addition channels for partner to voice there......

Words: 1275 - Pages: 6