The 2012 net income of $44.88B reported showed a 9.30% growth of $3.82B compared to the $41.06B in net income reported in 2011 (ExxonMobil Corporation, 2013). While the amount of growth is substantial when standing alone, it was modest when comparing the 2010 and 2011 reporting periods. That time frame saw a 34.80% growth which equaled $10.60B (ExxonMobil Corporation, 2012). When considering ExxonMobil’s cash flow, one finds that cash flow for 2012 was a negative $3.08B. The company’s cash and cash equivalents started the year with $12.66B and ended with $9.58B, a 24.83% drop during the year.
Comparing the company’s net income to its actual cash generated, an investor can determine whether the company is more aggressive or conservative in accounting for its performance. 2. What are the incremental cash flows for the project in years 1 through 5 and how do these cash flows differ from accounting profits or earnings? Year 1 - Free Cash Flow: 7,512,000; Accounting Profits Earned: 7,154,500 Year 2 - Free Cash Flow: 14,972,000; Accounting Profits Earned: 12,340,000 Year 3 - Free Cash Flow: 15,288,000; Accounting Profits Earned: 14,110,000 Year 4 - Free Cash Flow: 8,736,000; Accounting Profits Earned: 8,190,000 Year 5 - Free Cash Flow:
The compensation expense for 2011 will be (Round off turnover calculations to three decimal places and answer to the nearest dollar.) ** $77,468 | $80,022 | $82,575 | $160,043 | 4. On January 1, 2010, Wilson Corporation granted Emelia Walker, its president, a compensatory stock option plan to purchase 8,000 shares of Wilson's $10 par common stock. The option price is $25 per share and the option has a fair value of $7 per option, which is exercisable on January 1, 2014, after four years of service. How much compensation expense should Wilson recognize on December 31, 2010?
Problem 17-19 on Dividend Capture Strategy based on Chapter 17 Payout Policy Que Corporation pays a regular dividend of $1 per share. Typically, the stock price drops by $0.80 per share when the stock goes ex-dividend. Suppose the capital gains tax rate is 20%, but investors pay different tax rates on dividends. Absent transactions costs, what is the highest dividend tax rate of an investor who could gain from trading to capture the dividend? Problem 23-5 on Preferred Stock based on Chapter 23 Raising Equity Capital Three years ago,
How does the sales growth rates in recent years compare with the growth in inventory and accounts receivable? What might explain why these rates are similar or different? In the last financial year, preliminary reports indicate that the company managed to generate $42.6 Million compared to the previous year where it generated $35.1 Million reporting an increase of 21.3% in revenue. Inventory grew by 16.9% and account receivable grew by 40.1% from 2005 to 2006. Ceres is a service company and they carry fewer amounts of inventory compared to a typical manufacturing company.
This is the second extraordinary item. 3. The another extraordinary item can be the current installment of LT debit in 2007, the current installment of LT debit in 2007 was only $ 18 million. Especially compare to fiscal 2009 which decreased $1749 million. This situation happened because of the increasing sales of fiscal 2007 ($90,837) that they were able to pay back $1749 million debts.
$1,500,000/$12,000,000 = 0.125 or 12.5% Each dollar of revenue produces 12.5% of net income or profit. Cash flow= cash generated during the year The rough estimation of cash flow = net income + non -cash expenses, in this case, $1,500,000 + $1,500,000 = 3,000,000 C. Now, suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine’s net income, total profit margin, and cash flow? Brandywine Homecare Income statement with double depreciation expense: Month ending December 31, 2007 Revenue $12,000,000 Total revenue $12,000,000 Expenses: Depreciation $ 1,500,000x2= 3,000,000 Other 12,000,000 x 75/100 = 9,000,000 Total expenses= Depreciation + Other expenses= 1,500,000x2+ 9,000,000= $12,000,000 Total revenue – total expenses = Net income or Profit - 12,000,000- 12,000,000= 0 What
GDP composite of china 2009 Physical capital accounted for almost 50% of total growth and labour for only a little over 10% over recent. Total factor productivity contributed the remaining growth, partly driven by the reallocation of labour from the rural sector to manufacturing. China’s savings are high but it is not the household saving, it is unchanged since 1990's, therefore the consumption is 35%. The corporate savings have increased due to the firm tendency to retain earnings. According to World scope data, over half of listed Chinese industrial firms did not pay a dividend over the past decade.
To start with, we decided to calculate SGR sustainable growth rate, which represents the growth rate that company can sustain without borrowing money. SGR = ROE x (1 - dividend-payout ratio) In case with Wilson Company SGR=ROE and equals 11.7% on average for the last 3 years. It turns that sales growth rate is twice higher than SGR. Based on our evaluation we expect 25% sales growth in 1985. Such difference indicates that company needs to borrow extra funds in 1985.
How much cash did it collect from its customers? $17,000 $14,000 $3,000 Cannot be estimated 21.Which one of the following items will not appear in the operating section of Patnode's 2005 indirect method cash flow statement? Deduct: increase in accounts receivable $3,000 Add: decrease in accounts payable $1,000 Add: increase in taxes payable $2,400 Add: decrease inventories $6,000 22.What is Patnode's current ratio at the end of 2004? 2.46 0.41 1.12 0.89 23.What is Patnode's total debt to equity ratio at the end of 2004 (rounded to two decimal places)? 5.30 0.19 0.25 4.04 24.Patnode recorded a 2005 tax expense of $3,000.