| | - CHAPTER 3
- The annual report
- Balance sheet: Assets
- Balance sheet:
- Income statement
- Other data
- Statement of Retained Earnings (2005)
- Statement of Cash Flows (2005)
- Statement of Cash Flows (2005)
- What can you conclude about D’Leon’s financial condition from its statement of CFs?
- Did the expansion create additional net operating after taxes (NOPAT)?
- What effect did the expansion have on net operating working capital?
- What effect did the expansion have on operating capital?
- What is your assessment of the expansion’s effect on operations?
- What effect did the expansion have on net cash flow and operating cash flow?
- What was the free cash flow (FCF) for 2005?
- Economic value added (EVA)
- What is the firm’s EVA? Assume the firm’s after-tax percentage cost of capital was 10% in 2004 and 13% in 2005.
- Did the expansion increase or decrease MVA?
- Does D’Leon pay its suppliers on time?
- Does it appear that D’Leon’s sales price exceeds its cost per unit sold?
- What if D’Leon’s sales manager decided to offer 60-day credit terms to customers, rather than 30-day credit terms?
- How did D’Leon finance its expansion?
- Would D’Leon have required external capital if they had broken even in 2005 (Net Income = 0)?
- What happens if D’Leon depreciates fixed assets over 7 years (as opposed to the current 10 years)?
- Federal Income Tax System
- Corporate and Personal Taxes
- Tax treatment of various uses and sources of funds
- More tax issues
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