Ratrner Robotics Case Studies Examples

The Data that will be used for the entire analysis is as follows

Operating Income = $ 5 Million
Depreciation Expense = $ 1 Million
Interest Expense = $ 1 Million
Corporate Tax Rate = 40%

Net Income of Rattner Robotics is as follows

Operating Income $ 5 Million
Less: Interest Expense $ 1 Million
Net Income before Tax = $ 4 Million
Tax 40% = $ 1.6 Million
Net Income after Tax = $ 2.4 Million

Net Operating Working Capital (NOWC) of Rattner Robotics is as follows

NOWC = Current Assets – Account Payable
= $ 3.4 Million
NOWC = $ 3.4 Million
Assume that all the current assets and current liabilities are operating, and then the net working capital of the company will be the same like Net Operating Working Capital.
= Current Assets + Net Income - liabilities
= $ 3 million

The Free cash flow (FCF) of the company is as follows

FCF = EBIT (1-Tax Rate) + Depreciation – Change in Working Capital – Capital Expenditure
= 5 Million (1-40%) + 1 Million + 0 – 0 Million
= 3 Million + 1 Million
FCF = $ 4 Million
Changes in Shareholders equity means to have changing in the entire structure of the company. Statement of Changes in Equity is one of the most important elements of the Balance Sheet of a company, and it is analyzed in this particular section of the report (Accountingexplained.com, 2015). The Statement of Shareholder’s Equity of the Company is as follows, which has numerous items in it.

References

Accounting. (2015). Retrieved 28 February 2015, from http://termsexplained.com/772531/net-operating-working-capital
Accountingexplained.com,. (2015). Statement of Changes in Shareholders' Equity | Format | Example. Retrieved 28 February 2015, from http://accountingexplained.com/financial/statements/changes-in-shareholders-equity