SEBRING CORPORATION: INCOME STATEMENTS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF
ID: 1174737 • Letter: S
Question
SEBRING CORPORATION: INCOME STATEMENTS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2005 2004 $3,000.0 3,060.0 2,550.0 $ 450.0 75.0 $ 375.0 65.0 60.0 $ 315.0 1540126.0 Sales $3,600.0 Operating costs (excluding depreciation and amortization) $ 540.0 90.0 $ 450.0 EBITDA Depreciation and amortization Earnings before interest and taxes Interest $ 385.0 Earnings before taxes Taxes (40%) Net income available to common stockholders Common dividends $231.0 $ 181.5 S 13.2 SEBRING CORPORATION: BALANCE SHEETS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2005 2004 Assets Cash and marketable securities Accounts receivable Inventories $ 36.0 S 30.0 540.0 450.0 $1,080.0 750.0 $2,016.0 $1,8300 $1,116.0 Total current assets Net plant and equipment Total assets 900.0 Liabilities and equity: Accounts payable Notes payable Accruals S 270.0 155.0 216.0180.0 $ 605.0 450.0 $1,055.0 150.0 $324.0 201.0 $741.0 450.0 $1,191.0 150.0 Total current liabilities Long-term bonds Total debt Common stock (50 million shares) Retained earnings $ 825.0 775.0 $2,016.0 $1830.0 Total common equity Total liabilities and equityExplanation / Answer
1.
=450*(1-40%)+90-(900-750)-(36+540+540-324-216-30-450-600+270+180)=174 MILLION
2.
=EBIT*(1-tax rate)=450*(1-40%)=270 MILLION
3.
=Cash+Accounts Receivable+Inventory-Accounts Payabale-Accrued Expenses=36+540+540-324-216=576 MILLION
4.
=Beginning cahs at 2005+Cash flow from operating activities+Cash flow from Financing activiitirs+Cashflow from investing activities=75+325+(500-100)+(-600)=200 MILLION
5.
=20000/(1+7.5%)^50=537.7826453
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