- Last Year Next Year Smil Income Statement Revenues Cost Of Sales Selling Costs Depreciation Ebit Interest Expenses Gain 1 (13.57 KiB) Viewed 41 times
Last year Current year Next year Smil Balance Sheet Assets Working cash Excess cash & marketable securities Accounts receivable Inventories Current assets Property, plant and equipment Equity investments Total assets 220 910 2,200 3,300 6,630 4,400 500 11,530 250 740 2,420 3,630 7,040 4,840 500 12,380 260 840 2,610 3,920 7,630 5,230 500 13,360 Liabilities and Equity Account payable Short-term debt Accrued expenses Current liabilities Long-term debt Retained Earnings Shareholders' equity Total Liabilities & Equity 2,750 900 1,650 5,300 2,100 3,130 1,000 11,530 3,030 900 1,820 5,750 2,100 3,530 1,000 12,380 3,270 900 1,960 6,130 2,100 4,130 1,000 13,360
a Required: a) Above is the income statement and balance sheet for Tasty Satay Co, a $600 million company producing satay. Compute ( NOPLAT and invested capital for all three years. (i) ROIC for the current year and next year (111) If the average cost of capital is 12%, is the company creating value? In which year is the firm performing better? Why? Using the reorganized financial statements created in the previous solution, what isthe free cash flow for Tasty Satay Co in the current and next year? Note: Assume an operating tax rate of 25%.
b) Using the reorganized financial statements created in the previous solution, what is the free cash flow for Tasty Satay Co in the current and next year?