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    Camel Corporation: free cash flow, DuPont, EPS, inventory

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    Camel Corporation's financial Statements

    Balance Sheet
    2008 2009
    assets 7,282 57,600
    cash 632,160 351,200
    account receivable 1,287,360 715,200
    inventories 1,926,802 1,124,000
    total current assets 1,202,950 491,000
    gross fixed assets 263,160 146,200
    less accumulated depreciation 939,790 344,800
    net fixed assets 2,866,592 1,468,800

    Liability and equity

    account payable 524,160 145,600
    accrualas 636,808 200,000
    total current liabilities 489,600 136,000
    long term debt 1,650,568 481,600
    common stock (100,000 shares) 723,432 321,432
    retained earnings 460,000 460,000
    total equity 32,592 203,768
    total liabilities and equity 492,592 663,768
    2,866,592 1,468,800
    Income Statement
    2008 2009
    sales 6,034,000 3,432,000
    cost of goods sold 5,528,000 2,864,000
    other expenses 519,988 356,672
    total operating cost excluding
    depreciation and amortization 6,047,988 3,222,672
    depreciation and amortization 116,960 18,900
    EBIT ($130,984) 190,428
    interest expense 136,012 43,828
    EBT ($266,960) 146,600
    Taxes (40%) ($106,784) 58,640
    Net income ($160,176) 87,960

    shares outstanding 100,000 shares

    a) Determine the free cash flow for Camel for 2008
    b) Construct the DuPont Identity for Camel for 2008
    c) Determine the EPS for Camel 2008
    d) Determine the inventory period for Camel 2008 and explain what it means.

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    https://brainmass.com/business/inventory/camel-corporation-free-cash-flow-dupont-eps-inventory-283496

    Solution Preview

    a) Determine the free cash flow for Camel for 2008

    FCF = [EBIT (1 - T) + Depreciation and amortization] - [capital expenditures + change in net operating working capital]

    capital expenditures = amount the fixed assets increased by from previous year + depreciation.
    = 2,866,592 + 116,960 = $2,983,552.

    change in net operating working capital = (cash and cash ...

    Solution Summary

    This solution is comprised of detailed explanation and step-by-step calculation to financial analysis of Camel Corporation.

    $2.49

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