Tugas 1 MKD

Kanaya Tabhita Djie (01112180013)

Hal 17 (1 dan 6) – 8/26/2020

1. What are the three types of financial management decisions? For each type of decision, give
an example of a business transaction that would be relevant.
a. Capital budgeting
Capital budgeting adalah proses perencanaan dan mengelola investasi jangka panjang milik
suatu perusahaan. Manajer keuangan berusaha untuk mencari kesempatan investasi yang dapat
memberikan keuntungan, atau dalam kata lain nilai dari cash flow dari aset melebihi biaya yang
dibayarkan untuk aset tersebut.
Contohnya, restoran McDonald’s yang sedang menentukan apakah akan membuka cabang
restoran baru atau tidak.
b. Capital structure
Capital structure dari perusahaan adalah gabungan dari long-term debt dan equity untuk
membiayai pengerjaannya.
Contohnya, manajer keuangan sebuah perusahaan makanan akan menentukan seberapa banyak
uang yang harus dipinjam untuk membiayai produksi.
c. Working capital management
Working capital management menyangkut masalah aset jangka pendek dan hutang jangka
pendek milik sebuah perusahaan dan aktivitas pengelolaan modal kerja secara sehari-hari ini
akan memastikan perusahaan mempunyai sumber-sumber yang dapat membantu proses
pengerjaan dan dapat menghindari kendala-kendala yang memerlukan biaya.
Contohnya, toko buku yang membayar utang bank yang digunakan untuk membiayai rak buku
baru.

6. Who owns a corporation? Describe the process whereby the owners control the management.
What is the main reason that an agency relationship exists in corporate form of organization?
In this context, what kinds of problems can arise?
Pemilik dari sebuah korporasi adalah pemegang saham (stockholder). Pemegang saham akan
menentukan dewan direksi (board of directors) yang kemudian dewan direksi ini akan menentukan
manajer. Manajer yang akan mengatur berjalannya perusahaan sesuai dengan kepentingan para
pemegang saham. Hubungan antara kepemilikan dan manajemen yang terpisah ini memiliki
kelebihan yaitu jangka usia korporasi yang tidak terbatas karena kepemilikan (yang
direpresentasikan dengan saham) ini dapat berpindah tangan ke orang lain. Korporasi melakukan
peminjaman atas nama perusahaan itu sendiri sehingga pemegang saham di sebuah korporasi
memiliki liabilitas yang terbatas untuk utang perusahaan, kerugian terbesar mereka hanyalah
sebesar yang mereka investasikan. Masalah yang bisa timbul adalah agency problem. Kepentingan
manajemen dan kepentingan pemegang saham bisa saling berbeda, sehingga manajemen bisa saja
bertindak di luar keinginan dari pemegang saham dan usaha untuk memaksimalkan harga saham
bisa gagal untuk dicapai.
Hal 41 - 43 no. 2,3,4,5,8,9,10,11,12,13,14,21.

2 sales $686,000
cost $297,000
depreciation expense $66,000
EBIT $323,000
interest expense $35,000
taxable income $288,000
taxes (30%) $86,400
net income $201,600

3 based on problem 2
net income $201,600
paid out cash dividends $73,000
addition to retained earnings $128,600

4 based on problem 3
shares of common stock outstanding 90000
earning per share (EPS) =
net income/shares of common stock outstanding
128600\90000
$1.43
dividends per share (DPS) =
dividends/shares of common stock outstanding
73000/90000
$0.81

5 3 years ago, purchased machinery for $7,000,000

today, the machinery can be sold for $4,900,000
net fixed asset $3,700,000
current liabilities $1,100,000
NWC $380,000
current assets =
NWC + current liabilities
380000 + 1100000
$1,480,000
book value of assets =
current assets + net fixed assets
1480000 + 3700000
$5,180,000
if all the current assets are liquidated today, the company would receive $1,600,000
market value of assets =
market value of current assets + market value fixed assets
1600000 + 4900000
$6,500,000

8 sales $43,800
cost $22,700
depreciation expense $2,100
EBIT $19,000
 interest expense $1,600
taxable income $17,400
taxes (35%) $6,090
net income $11,310

Operating cash flow (OCF) =

EBIT + depreciation - taxes
19000 + 2100 - 6090
$15,010

9 2014's net fixed assets $ 3,400,000

2015's net fixed assets $ 4,200,000
2015's depreciation $ 385,000
net capital spending (NCS) =
ending net fixed assets - beginning fixed assets + depreciation
4200000 - 3400000 + 385000
$ 1,185,000

10 2014 balance sheet 2015 balance sheet

current assets $2,100 current assets $2,250
current liabilities $1,380 current liabilities $1,710
2014's NWC $720 2015's NWC $540

Change in NWC =
ending NWC - beginning NWC
540 - 720
-$180

11 2015 long-term debt $2,280,000

2014 long-term debt $1,950,000
net new borrowing $330,000
2015 interest expense $235,000
cashflow to creditors =
interest paid - net new borrowing
235000 - 330000
-$95,000

12 2014 balance sheet

common stock account $670,000
additional paid-in surplus account $4,100,000
$4,770,000
2015 balance sheet
common stock account $825,000
additional paid-in surplus account $4,400,000
$5,225,000
paid out in cash dividends $565,000
cashflow to stockholders =
dividends paid - net new equity raised
565000 - (5225000-4770000)
$110,000
13 based on problem 11 and 12
net capital spending $1,250,000
change in NWC -$45,000
cashflow from assets =
CF to stockholders + CF to creditors
110000 + (-95000)
$15,000
cashflow from assets =
OCF - NCS - change in NWC
OCF - 1250000 - (-45000)
OCF - 1295000
CF from assets = CF from assets
15000 = OCF - 1295000
OCF = 15000 + 1295000
$1,310,000

14 sales $267,000
cost $148,000
other expenses $8,200
depreciation expense $17,600
EBIT $93,200
interest expense $12,400
taxable income $80,800
taxes $32,620
net income $48,180

dividends $15,500
new equity $6,400
redeemed long term debt -$4,900

a) OCF = * Net capital spending (NCS) =

EBIT + depreciation - taxes depreciation + change in fixed assets
93200 + 17600 - 32620 17600 + 25000
$78,180 $42,600
b) cashflow to creditors =
interest paid - net new borrowing
12400 - (-4900)
$17,300
c) cashflow to stockholder =
dividends paid - net new equity raised
15500 - 6400
$9,100
d) if net fixed assets increased by $25000 during the year, addition to NWC?
cashflow from assets =
cashflow to creditors + cashflow to stockholder = OCF - NCS - Change in NWC
17300 + 9100 = 78180 - 42600 - change in NWC
change in NWC = $9,180
21 sales $22,800.00
cost of goods sold $16,050.00
depreciation expense $4,050.00
EBIT $2,700.00
interest expense $1,830.00
taxable income $870.00
tax (34%) $295.80
net income $574.20

dividends paid $1,300.00

beginning of the year: end of the year:
net fixed assets $13,650.00 net fixed assets $16,800.00
current assets $4,800.00 current assets $5,930.00
current liabilities $2,700.00 current liabilities $3,150.00
NWC $2,100.00 NWC $2,780.00

** change in NWC = ending NWC - beginning NWC

2780 - 2100
$680.00
NCS = ending net fixed assets - beginning fixed assets + depreciation
16800 - 13650 + 4050
$7,200.00
a) net income = $574.20
b) OCF
EBIT + depreciation - taxes
2700 + 4050 - 295.8
$6,454.20
c) cashflow from assets
ocf - ncs - change in nwc
6454.2 - 7200 - 680
-$1,425.80
d) no new debt issued during the year what is the cashflow to creditors?
cashflow to creditors = interest paid - net new borrowing
1830 - 0
$1,830
what is the cashflow to stockholders?
cashflow to stockholders = cashflow from assets - cashflow to creditors
1425.8 - 1830
-$3,255.80
explain positive & negative signs through (a) and (d)
The cash flow from assets can be positive or negative, since it represents whether the firm raised funds
or distributed funds on a net basis. In this problem, even though net income and OCF are positive, the
firm invested heavily in both fixed assets and net working capital; it had to raise a net $201,425.8 in
funds from its stockholders and creditors to make these investments.