Cumberland Industries: Income Statement (In thousands of dollars) 2020 Sales $750,000 Operating costs excluding deprecia
Posted: Sat Feb 19, 2022 2:31 pm
Cumberland Industries: Income Statement
(In thousands of dollars)
2020
Sales
$750,000
Operating costs excluding depreciation
$487,500
EBITDA
$262,500
Depreciation (Cumberland has no amortization charges)
$12,387
EBIT
$250,113
Interest expense
$10,000
EBT
$240,113
Taxes (40%)
$60,028
Net income
$180,085
Cumberland Industries December 31 Balance
Sheets
(In thousands of dollars)
2020
2019
Assets
Cash and cash equivalents
$130,000
$74,625
Short-term investments
25,000
15,100
Accounts Receivable
108,470
85,527
Inventories
56,450
34,982
Total current assets
$319,920
$210,234
Net fixed assets
123,869
42,436
Total assets
$443,789
$252,670
Liabilities and equity
Accounts payable
$30,761
$23,109
Accruals
30,405
22,656
Notes payable
12,717
14,217
Total current liabilities
$73,883
$59,982
Long-term debt
80,263
63,914
Total liabilities
$154,146
$123,896
Common stock
$97,797
$90,000
Retained earnings
191,846
38,774
Total common equity
$289,643
$128,774
Total liabilities and equity
$443,789
$252,670
Part a) Calculate the most recent year's Free Cash Flow (FCF) of
the firm.
Part b) Calculate Return on Invested Capital (ROIC) of the firm.
Did Growth Add Value? You can assume WACC = 15%.
Part c) What is the most recent year total dividend payment of
the firm?
(In thousands of dollars)
2020
Sales
$750,000
Operating costs excluding depreciation
$487,500
EBITDA
$262,500
Depreciation (Cumberland has no amortization charges)
$12,387
EBIT
$250,113
Interest expense
$10,000
EBT
$240,113
Taxes (40%)
$60,028
Net income
$180,085
Cumberland Industries December 31 Balance
Sheets
(In thousands of dollars)
2020
2019
Assets
Cash and cash equivalents
$130,000
$74,625
Short-term investments
25,000
15,100
Accounts Receivable
108,470
85,527
Inventories
56,450
34,982
Total current assets
$319,920
$210,234
Net fixed assets
123,869
42,436
Total assets
$443,789
$252,670
Liabilities and equity
Accounts payable
$30,761
$23,109
Accruals
30,405
22,656
Notes payable
12,717
14,217
Total current liabilities
$73,883
$59,982
Long-term debt
80,263
63,914
Total liabilities
$154,146
$123,896
Common stock
$97,797
$90,000
Retained earnings
191,846
38,774
Total common equity
$289,643
$128,774
Total liabilities and equity
$443,789
$252,670
Part a) Calculate the most recent year's Free Cash Flow (FCF) of
the firm.
Part b) Calculate Return on Invested Capital (ROIC) of the firm.
Did Growth Add Value? You can assume WACC = 15%.
Part c) What is the most recent year total dividend payment of
the firm?