[기출문제] 한양대학교 에리카캠퍼스 재무관리 2023-1 중간 기출문제 (정답 포함)

1. Consider a firm that was established in 2021. The initial balance sheet of the firm is described below. The balance sheet indicates that the firm initially raised $4M from creditors and $6M from equityholders and then invested $9M in fixed assets and decided to keep the remaining capital as cash. In 2022, the firm generated profits of $3M. The firm paid $0.5M as tax. The firm paid $0.2M plus $1.5M to creditors as the interest and principal payments. That is, the amount of debt that reached the maturity at the end of 2022 was $1.5M. The firm invested $1.2M to build a new factory. Lastly, the firm paid $0.3M to shareholders as dividend. The firm did not issue any additional equity or debt. The depreciation rate is 0. In this case, fill in the balance sheet of 2022 by answering the following questions. 

Balance Sheet
        2021        2022                2021        2022
Cash reserves        $1M                Liabilities        $4M        
Fixed assets        $9M                Stockholders’ equity                
                        Common stock        $6M        
                        Retained earnings        $0M        
Total assets        $10M                Total liabilities and stockholders’ equity        $10M        

(1)        What is the net income as of 2022?

3 (profits) – 0.5 (tax) – 0.2 (interest) = 2.3M

(2)        What is the retained earnings as of 2022?

Retained earnings = Net income – Dividend = 2.3 – 0.3 = 2M

(3)        What is the amount of liabilities as of 2022?

4 (previous-year debt) – 1.5 (principal payment) = 2.5M

(4)        What is the value of the fixed assets as of 2022?

9 (previous-year fixed assets) + 1.2 (investment) = 10.2M

(5)        What is the amount of cash that the firm used in 2022?

From the retained earnings of 2M, the firm paid 1.5M to creditors as principal payment and invested 1.2M in fixed assets. So, the firm had to pull out 0.7M from its cash reserves to cover this capital expenditure.

(6)        From your answer to (5), what is the amount of the cash reserves as of 2022?

1 – 0.7 = 0.3M

2. You plan to spend $50000 per year after retirement. You are expected to retire 40 years from now. After retirement, you expect to live for 30 years more. The interest rate is 5%. Ignore the inflation and the interest rate changes.

(1)        To meet your goal, how much do you need to have in cash when you retire?

50000/1.05 + … + 50000/1.05^30 = 50000 * ( ( 1 – 1/1.05^30 )/0.05 ) = $768622

(2)        How much do you need to save from the next year until you retire to meet your goal?

C/1.05 + … + C/1.05^40 = C*( 1.05^40 – 1 )/0.05 = 768622
The solution is C = $6362

3. The balance sheet and income statement of a given firm are described below.
(1) Calculate the operating cash flow of the firm.
Operating cash flow = EBIT – Current taxes + Depreciation = 169 – 15 + 100 = 254
(2) Calculate the total cash flow of the firm.
Total cash flow of the firm = Operating cash flow – Capex - Δ NWC
Capex = ΔTotal fixed assets + Depreciation = 1125-1035+100 = 190
Δ NWC = (771-707)-(490-455) = 29
So, Total cash flow of the firm = 254–190–29 = 35
(3) Calculate the cash flow paid to the firm’s creditors.
Cash flow to creditors = Interest expense - ΔLong-term debt = 49 – (481-458) = 26
(4) Calculate the cash flow paid to the firm’s stockholders.
Cash flow to stockholders=Dividend-Δ(Common stock+Capital surplus)+ΔTreasury stock
Retained earning = Δ Accumulated retained earnings = 397-347=50
Dividend = Net income – Retained earning = 96-50 = 46
So, Cash flow to stockholders=46-(55-32+347-327)+(26-20)=9
(5) Is the sum of the answers in (3) and (4) the same as the answer in (2)?
Yes.

1.
(1)        What is the net income as of 2022?

3 (profits) – 0.5 (tax) – 0.2 (interest) = 2.3M

(2)        What is the retained earnings as of 2022?

Retained earnings = Net income – Dividend = 2.3 – 0.3 = 2M

(3)        What is the amount of liabilities as of 2022?

4 (previous-year debt) – 1.5 (principal payment) = 2.5M

(4)        What is the value of the fixed assets as of 2022?

9 (previous-year fixed assets) + 1.2 (investment) = 10.2M

(5)        What is the amount of cash that the firm used in 2022?

From the retained earnings of 2M, the firm paid 1.5M to creditors as principal payment and invested 1.2M in fixed assets. So, the firm had to pull out 0.7M from its cash reserves to cover this capital expenditure.

(6)        From your answer to (5), what is the amount of the cash reserves as of 2022?

1 – 0.7 = 0.3M

2.
(1)        To meet your goal, how much do you need to have in cash when you retire?

50000/1.05 + … + 50000/1.05^30 = 50000 * ( ( 1 – 1/1.05^30 )/0.05 ) = $768622

(2)        How much do you need to save from the next year until you retire to meet your goal?

C/1.05 + … + C/1.05^40 = C*( 1.05^40 – 1 )/0.05 = 768622
The solution is C = $6362

3.
(1) Calculate the operating cash flow of the firm.
Operating cash flow = EBIT – Current taxes + Depreciation = 169 – 15 + 100 = 254
(2) Calculate the total cash flow of the firm.
Total cash flow of the firm = Operating cash flow – Capex - Δ NWC
Capex = ΔTotal fixed assets + Depreciation = 1125-1035+100 = 190
Δ NWC = (771-707)-(490-455) = 29
So, Total cash flow of the firm = 254–190–29 = 35
(3) Calculate the cash flow paid to the firm’s creditors.
Cash flow to creditors = Interest expense - ΔLong-term debt = 49 – (481-458) = 26
(4) Calculate the cash flow paid to the firm’s stockholders.
Cash flow to stockholders=Dividend-Δ(Common stock+Capital surplus)+ΔTreasury stock
Retained earning = Δ Accumulated retained earnings = 397-347=50
Dividend = Net income – Retained earning = 96-50 = 46
So, Cash flow to stockholders=46-(55-32+347-327)+(26-20)=9
(5) Is the sum of the answers in (3) and (4) the same as the answer in (2)?
Yes.