Question

4. Rollerball Corporation has the following financial statements for year ending 12/31/2018. (15 points) Rollerball Corporation Income Statement (in thousands) 2018 Sales 5,450 Cost of Goods Sold 3,250 Gross Profit 2,200 Depreciation 820 Operating Expenses 470 Administration Exp. 115 Operating Profit 795 Interest Expense 88 Profit Before Taxes 707 Taxes (35%) 247 Net Income 460 Dividends 250 Rollerball Corporation Balance sheet (in thousands) 2017 2018 Assets Cash 100 110 Accounts Receivable 1,250 1,325 Inventory 1,125 1405 Total Current Assets 2,475 2840 Gross Fixed Asset 1650 2200 Accumulated depreciation 200 820 Net Fixed Assets 1,450 1380 Total Assets 3,925 4220 Liabilities Notes Payable 850 950 Accounts Payable 1,550 1650 Total Current Liab. 2,400 2600 Long Term Debt 425 425 Common Stock 400 400 Retained Earnings 700 795 Total Liab. & Earnings 3,925 4220 a) Calculate the free cash flow to equity for Rollerball in year 2018? (4 points)

          4. Rollerball Corporation has the following financial statements for year ending 12/31/2018. (15 points)
Rollerball Corporation Income Statement (in thousands)
2018
Sales 5,450
Cost of Goods Sold 3,250
Gross Profit 2,200
Depreciation 820
Operating Expenses 470
Administration Exp. 115
Operating Profit 795
Interest Expense 88
Profit Before Taxes 707
Taxes (35%) 247
Net Income 460
Dividends 250
Rollerball Corporation Balance sheet (in thousands)
2017 2018
Assets
Cash 100 110
Accounts Receivable 1,250 1,325
Inventory 1,125 1405
Total Current Assets 2,475 2840
Gross Fixed Asset 1650 2200
Accumulated depreciation 200 820
Net Fixed Assets 1,450 1380
Total Assets 3,925 4220
Liabilities
Notes Payable 850 950
Accounts Payable 1,550 1650
Total Current Liab. 2,400 2600
Long Term Debt 425 425
Common Stock 400 400
Retained Earnings 700 795
Total Liab. & Earnings 3,925 4220
a) Calculate the free cash flow to equity for Rollerball in year 2018? (4 points)

4. Rollerball Corporation has the following financial statements for year ending 12/31/2018. (15 points)
Rollerball Corporation Income Statement (in thousands)
2018
Sales 5,450
Cost of Goods Sold 3,250
Gross Profit 2,200
Depreciation 820
Operating Expenses 470
Administration Exp. 115
Operating Profit 795
Interest Expense 88
Profit Before Taxes 707
Taxes (35%) 247
Net Income 460
Dividends 250
Rollerball Corporation Balance sheet (in thousands)
2017 2018
Assets
Cash 100 110
Accounts Receivable 1,250 1,325
Inventory 1,125 1405
Total Current Assets 2,475 2840
Gross Fixed Asset 1650 2200
Accumulated depreciation 200 820
Net Fixed Assets 1,450 1380
Total Assets 3,925 4220
Liabilities
Notes Payable 850 950
Accounts Payable 1,550 1650
Total Current Liab. 2,400 2600
Long Term Debt 425 425
Common Stock 400 400
Retained Earnings 700 795
Total Liab. Earnings 3,925 4220
a) Calculate the free cash flow to equity for Rollerball in year 2018? (4 points)

Added by Jennifer P.

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