May 29, 2016

Homework Help: Financial accounting

Posted by diana sheets on Wednesday, September 19, 2007 at 9:51pm.

Last year Rattner had $5 million in operating income(EBIT). The company had net depreciation expense of $1 million and interest expense of $1 million; its corporate tax rate was 40 percent. The company had $14 million in current assets and $4 million in non-interest bearing liabilites, it has 15 million in net plant and equipment. It estimates that it has an after-tax cost of capital of 10 percent. Assume that Rattners only noncash item was depreciation.
A) What was the company's net income for the year?
B) What was the companys net cash flow?
C) What was the company's net operating profit after taxes (NOPAT)?
D0 What was the companys operating cash flow?

Please help me with this I need some help to understand this word problem.

Thank You

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