90.2K

Verified Solution

Link Copied!

Bailey Corporation's financial statements (dollars and shares are in millions) are provided here.
Bailey Corporation
(in million of dollars)
Balance Sheets as of December 31				2016	2015
Assets
Cash and cash equivalents				$ 14,000	$ 13,000
Accounts receivable				30,000	25,000
Inventories				28,125	21,000
Total current assets				$ 72,125	$ 59,000
Net fixed assets				50,000	47,000
Total assets				$ 122,125	$ 106,000
Liabilities and equity
Accounts payable				$ 10,800	$ 9,000
Notes payable				6,700	5,150
Accruals				7,600	6,000
Total current liabilities				$ 25,100	$ 20,150
Long-term bonds				15,000	15,000
Total liabilities				$ 40,100	$ 35,150
Common stock				50,000	50,000
Retained Earnings				32,025	20,850
Total common equity				$ 82,025	$ 70,850
Total liabilities and equity Income Statement for Year Ending 2016 Sales $214,000 Expenses excl. depr & amort. 170,000 EBITDA $44,000 Depreciation and amortization 5,000 EBIT $39,000 Interest expense 1,750 EBT $37,250 Taxes (40%) 14,900 Net Income $22,350 Dividends paid $11,175 a. What was the change in Bailey's net operating working capital from 2015 to 2016? NOWC = write the formula calculate the answer b. What was Bailey's 2016 free cash flow? FCF = write the formula calculate the answer				$ 122,125	$ 106,000

Answer & Explanation Solved by verified expert

See Answer