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Home / Questions / Question #2: NET INCOME AND CASH FLOW Last year Rattner Robotics had $5 million in operating income

Question #2: NET INCOME AND CASH FLOW Last year Rattner Robotics had $5 million in operating income


Question #2: NET INCOME AND CASH FLOW Last year Rattner Robotics had $5 million in operating income (EBIT). Its depreciation Question #2: NET INCOME AND CASH FLOW Last year Rattner Robotics had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 40%. At year-end, it had $14 million in current assets, $3 million in accounts payable, $1 million in accruals, and $15 million in net plant and equipment. Assume that Rattner's only noncash item was depreciation. a. What was the company's net income? b. What was its net working capital (NWC)? d. If the firm had $4.5 million in retained earnings at the beginning of the year and paid out total dividends of $1.2 million, what was its retained earnings at the end of the year? Assume that all dividends declared were actually paid.

Apr 04 2020 View more View Less

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