Last year Charlie Brown had $5 million in operating income (EBIT). It’s depreciation expense was $1...

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Last year Charlie Brown had $5 million in operating income(EBIT). It’s depreciation expense was $1 million, its interestexpense was $1 million, and its corporate tax rate was 40%. Atyear-end, it had $14 million in current assets, $3 million inaccounts payable, $1 million in accruals, $2 million in notespayable, and $15 million in net plant and equipment. Charlie had noother current liabilities. Assume the Charlie’s only noncash itemwas depreciation.
What was the company’s net income?
What was its net operating working capital (NOWC)
What was its net working capital?
Charlie had $12 million in net plant and equipment the prioryear. Its net operating working capital has remained constant overtime. What is the company’s free cash flow (FCF) for the year thatjust ended?4
Charlie had 500,000 common shares outstanding and the commonstock amount on the balance sheet is $5 million. The company hasnot issued or repurchased common stock during the year. Last year’sbalance in retained earnings was $11.2 million and the firm paidout dividends of $1.2 million during the year. Develop Charlie’send-of-year Statement of Stockholders’ Equity.

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Last year Charlie Brown had $5 million in operating income(EBIT). It’s depreciation expense was $1 million, its interestexpense was $1 million, and its corporate tax rate was 40%. Atyear-end, it had $14 million in current assets, $3 million inaccounts payable, $1 million in accruals, $2 million in notespayable, and $15 million in net plant and equipment. Charlie had noother current liabilities. Assume the Charlie’s only noncash itemwas depreciation.What was the company’s net income?What was its net operating working capital (NOWC)What was its net working capital?Charlie had $12 million in net plant and equipment the prioryear. Its net operating working capital has remained constant overtime. What is the company’s free cash flow (FCF) for the year thatjust ended?4Charlie had 500,000 common shares outstanding and the commonstock amount on the balance sheet is $5 million. The company hasnot issued or repurchased common stock during the year. Last year’sbalance in retained earnings was $11.2 million and the firm paidout dividends of $1.2 million during the year. Develop Charlie’send-of-year Statement of Stockholders’ Equity.