Exercise 1 - Chapter 2 (RWJJ, 2007)

Finanas Empresariais

Cullingan, Inc., has current assets of $5,000, net fixed

Demonstraes financeiras e assets of $23,000, current liabilities of $4,300, and long-
fluxos de caixa term debt of $13,100.

What is the value of the shareholders equity account for

this firm?
5k+23k-4.3k-13.1k=10.600,00
Nelson Areal
Departamento de Gesto How much is net working capital?

5k-4.3k=700,00

Exercise 2 - Chapter 2 (RWJJ, 2007) Exercise 9 - Chapter 3 (HRWJJ, 2013)

Royale, Inc., has sales of 527,000, costs of 280,000, In 2011, the Swedish bank, Swedbank, had a price-
depreciation expense of 38,000, interest expense of earnings ratio of 6.35. If the firms share price was SKr
15,000, and a tax rate of 35 percent.
71.70, what was its earnings per share?
What is the net income for this firm?
126.100,00
Suppose the company paid out 47,000 in cash PER=PpS/EpS .; EpS=71.7/0.0635 .; EpS=1.129,13
dividends. What is the addition to retained earnings?

126k-47k=79k
 Exercise 3 - Chapter 2 (RWJJ, 2007) Exercise 10 - Chapter 3 (HRWJJ, 2013)

Klingon Cruisers, Inc., purchased new cloaking Your company has just sealed a deal to sell a tract of land
machinery three years ago for $7 million. The machinery with accompanying warehouse for 3.2 million. This is
can be sold to the Romulans today for $3.2 million. significantly lower than the 7million your firm paid when
Klingons current balance sheet shows net fixed assets the plot was purchased at the height of the property
of $4 million, current liabilities of $2.2 million, and net boom. International Accounting Standards have been
working capital of $900,000. If all the current assets followed by your firm and so you will not make an
were liquidated today, the company would receive $2.8 accounting loss on the sale (why?). The company has
million cash.
non-current assets of 4 million, non-current liabilities of
2.2 million and net working capital (current assets less
What is the book value of Klingons total assets today?
current liabilities) of 0.9million. What impact does the
What is the market value? sale have on your firm's statement of financial position?
CA=NWC+CL ;. CA= MVta= MVca + MVnca
900k+2.2M MVta= 2.8+3.2
CA= 3.1M MVta= 6M
Book = CA+NCA
Book = 3.1+ 4 = 7.1M
Exercise 4 - Chapter 2 (RWJJ, 2007) Exercise 5 - Chapter 2 (RWJJ, 2007)

The Herrera Co. had $273,000 in taxable income. Using the

rates from Table 2.3 in the chapter, calculate the companys
2011 income taxes.
Tx=50k*0.15+25k*0.25+25k*0.34+(273k-100k)*0.39
Tx=89.720,00 Toyada, Inc., has sales of 13,500, costs of 5,400,
What is the average tax rate?
ATx=89.720/273.000*100 =32.86% depreciation expense of 1,200, and interest expense of
What is the marginal tax rate? MTx=39% 680. If the tax rate is 30 percent, what is the operating
cash flow, or OCF?

EBIT=13.5-5.4-1.2=6.9k
Tx=(EBIT-0.68)*0.3=1.866
OCF = EBIT+D-Tx = 6.9+1.2-1.866 = 6.234k
 Exercise 13 - Chapter 3 (HRWJJ, 2013)
Morenas Driving Schools 2011 statement of financial
position showed non-current assets of 4.2 million. One
year later, the 2012 statement of financial position
showed non-current assets of 4.7 million. The
companys 2012 income statement showed a
depreciation expense of 925,000.
340,000.
What was Morenas net capital spending for 2012?
FDC= Flux.C. Despesa de Capital = 4.7-4.2+0.925= 1,425k
Exercise 9 - Chapter 2 (RWJJ, 2007)
The 2006 balance sheet of Ganesh Enterprises, showed
Rs. 820,000 in the common stock account and Rs. 6.8
million in the additional paid-in surplus account. The
2007 balance sheet showed Rs. 855,000 and Rs. 7.6
million in the same two accounts, respectively.
and that the firm reduced its net working capital
If the company paid out Rs. 600,000 in cash dividends
during 2007, what was the cash flow to stockholders for
the year?
FCS = Flux.C. para Acionistas = 0.6- [(0.855+7.6)-(0.82+6.8)] = -0.235k
Exercise 8 - Chapter 2 (RWJJ, 2007)
The 2006 balance sheet of Ganesh Enterprises, showed
long-term debt of Rs. 2.8 million, and the 2007 balance
sheet showed long-term debt of Rs. 3.1 million. The 2007
income statement showed an interest expense of Rs.
What was the firms cash flow to creditors during 2007?
FCC= Flux.C. para Credores = 0.340 - (3.1-2.8) =0.04k
Exercise 10 - Chapter 2 (RWJJ, 2007)
Given the information for Ganesh Enterprises, in the
previous two exercises, suppose you also know that the
firms net capital spending for 2007 was Rs. 760,000
investment by Rs.165,000.
What was the firms 2007 operating cash flow, or OCF?
FCA= FCC+FCS = 0.04+(-0.235) = -0.195
FCA=FCO - Desp.Cap. - Variao FM
FCO= -0.195+0.76+(-0.165) = 0.4M