Blockbuster Is a North American Video and DVD Sales and Rental
Question 66
Question 66
Multiple Choice
Blockbuster is a North American video and DVD sales and rental chain. Use the equation approach and Blockbuster's financial statement for Year 2 to calculate additional funds needed (AFN) in Year 3. Assume that sales in Year 3 will be $5.67336 billion. Assume a 0% dividend payout rate. Blockbuster Inc. Income Statement and Balance Sheet As of December 31, Year 2 ($000's) Revenue COGS SG&A Dep. Exp. EBIT Int. Exp. Income Before Tax Income Taxes Net Income ASSETS Total Current Assets PP&E Goodwill Total Assets LIABILITIES AND OWNERS EQUITY Total Current Liabilities Long Term Debt Total Liabilities Owners Equity Common Stock Retained Earnings Total Stockholder Equity Total Liabilities and Owners Equity $5,157,6002,420,7002,708,500246,600−218,20078,200−296,400−56,100−$240,300716,400909,0006,127,000$7,752,4001,268,800734,900$2,003,7006,075,800−327,1005,748,700$7,752,400
A) -$225.363 million B) $63.243 million C) $125.363 million D) $189.900 million E) $299.990 million
Correct Answer:
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