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Flint Inc. Problem

The document provides the balance sheet and income statement for Flint Inc. for the years 2017 and 2018. It includes financial data necessary for calculating the free cash flow to the firm for 2018. The document is authored by Professor Padmini Srinivasan for a course on valuation and sustainable value.

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Samyak Jain
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14 views1 page

Flint Inc. Problem

The document provides the balance sheet and income statement for Flint Inc. for the years 2017 and 2018. It includes financial data necessary for calculating the free cash flow to the firm for 2018. The document is authored by Professor Padmini Srinivasan for a course on valuation and sustainable value.

Uploaded by

Samyak Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Valuation and Creating Sustainable Value

Prof. Padmini Srinivasan


Flint Inc.

The following is the balance sheet and Income statement of Flint Inc. for the year 2017 and
2018.
Calculate the free cash flow to the firm for the year 2018

Flint Inc.
Balance Sheet as at 31 Dec (in $)
Assets 2017 2018
Cash 80,000 1,28,000
Accounts receivables 75,000 1,10,000
Inventory 65,000 1,25,000
Current assets 2,20,000 3,63,000
Fixed assets 4,10,000 5,20,000
Less: Accumulated depreciation 70,000 95,000
Net fixed assets 3,40,000 4,25,000
Total assets 5,60,000 7,88,000

Liabilities & equity


Accounts payables 80,000 1,24,900
Current liabilities 80,000 1,24,900
Long term borrowings 1,20,000 1,40,000
Equity capital 2,00,000 2,00,000
Retained earnings 1,60,000 3,23,100
Total liabilities & equity 5,60,000 7,88,000

Flint Inc.
Income Statement (in $)
Year ending Dec 31 2017 2018
Sales 6,20,000 7,90,000
Cost of goods sold 4,00,000 4,60,000
Gross profit 2,20,000 3,30,000
Selling,general and administrative expenses 35,000 60,000
Depreciation 10,000 25,000
Operating Income (Earnings before interest & tax ) 1,75,000 2,45,000
Less: Interest Expenses 10,000 12,000
Earnings before tax 1,65,000 2,33,000
Tax (30%) 49,500 69,900
Net Income 1,15,500 1,63,100

© All Rights Reserved. This document has been authored by Professor Padmini Srinivasan and is permitted for use only within the course
"Valuation and Creating Sustainable Value" delivered in the online course format by IIM Bangalore. No part of this document, including any
logo, data, illustrations, pictures, scripts, may be reproduced, or stored in a retrieval system or transmitted in any form or by any means –
electronic, mechanical, photocopying, recording or otherwise – without the prior permission of the author.

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