Corporate Fin Mgt NDLM.PDF

(Nora) #1

(6) Inventory (Stocks) 1,520 2,400 2,800
Average Inventory 1520 + 2400 2400 + 2800
2 2
= 1,960 = 2,600


(7) Profit before Interest and Tax:
Profit before Depreciation and
Interest on Term Loan 1,500 2,400
Less: Depreciation 480 600
1 ,020 1,800


(8) Profits available for Equity
Shareholders:


Profit before Depreciation and
Interest on term loan 1,500 2,400
Less: Depreciation, Interest on Term
Loan and Tax 1,200 1,800
300 600


(9) Cost of Goods Sold:
Sales 4,800 7,200
Sales: Profit before Depreciation and
Interest on Term Loan 1,500 2,400
3,300 4,800


(10) Fixed Assets (Net) 1880 1,600 2,000


Average Fixed Assets (Net) 1880 + 1600 1600 + 2000
2 2


= 1,740 = 1,800

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