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QUESTION 22 Nickel LLC. has income statement and balance sheet shown below. Investors in Nickel...

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QUESTION 22 Nickel LLC. has income statement and balance sheet shown below. Investors in Nickel LLC have an opportunity cost of capital of 8.5%. Use the information provided, please anwser the following 4 questions. Income Statement (in millions) Net Sales $881 Cost of goods sold 820 Depreciation 31 Interest expense 12 Balance Sheet (in millions) Assets End of Year Start of Year Current assets $312 Long-term assets 358 222 Total assets $727 $534 $369 Liabilities Current liabilities Long-term debt Shareholders' equity Total Liab & Eq $194 108 425 $727 $157 121 256 $534 Q1 Use the information provided in the income statement, what is the net income of the firm in million dollars (assuming a corporate tax rate of 21%)? QUESTION 23 Q2 The company's return on capitalization is %. For total capitalization, please use the average of end of year and start of year total capitalization. QUESTION 24 Q3 Nickel LLC is creating value for its investors O True O False QUESTION 25 Q4 The company's cash flow form operaionts is $ million. (Cash flow from operations = net income + depreciation - change in net working capital)

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