As a soon-to-be business baccalaureate, Your proud parents are wanting you to take over the family business, starting on January 15, 2017. Before accepting this offer, you want to know more about the business. First, you decide to get a better understanding of the cash flows and other financial basics about the business. On December 31, 2016, your parents give you this information about the business for the calendar year 2016:
Financial Summary for 2016 (all numbers in thousands of USD)
Net Sales 850
COGS 400
Depreciation 250
Interest expense 77
Taxes paid 49
Dividends 50
Net capital spending 290
Net increase in Working capital 50
Net new borrowing 300
Total interest-bearing Debt as of 12/31 1,600
Based upon the Financial Summary for 2016 provided above, compute the following numbers:
1. EBIT
2. Taxable income
3. Tax rate (based upon Taxable Income)
4. Net income
5. Addition to retained earnings
6. Operating cash flow
7. Cash flow from assets
8. Cash flow to creditors
9. Cash flow to shareholders
10. How much net new equity was raised (or retired)?