Question 6 (1 point) Select information from ADINIKE Corporation\'s financial st

Question

Question 6 (1 point) Select information from ADINIKE Corporation's financial statements is provided here Balance Sheets as of December 31 Current Assets Net Plant and Equipment Total Assets 2014 2013 120,000 90,000 280,000 270,000 400,000 360,000 Accounts Payable Notes Payable Accruals Long-Term Bonds Total Common Equity Total Liabilities & Equity 20,000 21,600 28,000 10,800 12,000 25,200 104,000 86,400 236,000 216,000 400,000 360,000 Income Statement as of December 31 EBITDA Depreciation and Amortization Interest Taxes 40% Net Income 2014 120,000.0 14,000.0 10,400.0 38,240.0 57,360.0 Other Information WACC Number of common shares outstanding Price per share 2014 20.80% 4,000 $88.50

Explanation / Answer

Adinike Corporation All Amounts in $ Free Cash Flow for 2014 EBIT (1-Tax Rate) 63600 Add : Depreciation 14000 Less : Increase in Current Assets -30000 Less : Decrease in Accounts Payable -1600 Add : Increase in Notes Payable 17200 Less : Decrease in Accruals -13200 Less : Increase in Net Plant and Equipment -24000 Free Cash Flow 26000

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