Use the income statement shown next to calculate free cash flow for Rainier Printing for 2021. In addition to the information in the income statement, assume that Rainier had $580,000 in capital expenditures and $380,000 in working capital investments during 2021.Rainier Printing Income StatementJanuary 1 to December 31, 2021 ($ thousands)Net sales$ 8,600Cost of sales5,800Gross profit2,800Operating expense1,080Depreciation expense530Operating income1,190Interest expense230Income before tax960Tax192Income after tax$ 768Note: Enter your answer in thousands. Use the income statement shown next to calculate free cash flow for Rainier Printing for 2021. In addition to the information in theincome statement, assume that Rainier had $580,000 in capital expenditures and $380,000 in working capital investments during2021.Rainier Printing Income StatementJanuary 1 to December 31, 2021 ($ thousands)Net salesCost of salesGross profitOperating expenseDepreciation expenseOperating incomeInterest expenseIncome before taxTaxIncome after taxNote: Enter your answer in thousands.Free cash flow$8,6005,8002,8001,0805301,190960$ 768

Free cash flows is computed as follows-Free cash flows = Income after tax + depreciation expense -…

Use the income statement shown next to calculate free cash flow for Rainier Printing for 2021. In addition to the information in the income statement, assume that Rainier had $580,000 in capital expenditures and $380,000 in working capital investments during 2021. Rainier Printing Income Statement January 1 to December 31, 2021 ($ thousands) Net sales Cost of sales Gross profit Operating expense Depreciation expense Operating income Interest expense Income before tax Tax Income after tax Note: Enter your answer in thousands. Free cash flow $ 8,600 5,800 2,800 1,080 530 1,190 960 $ 768

Use the income statement shown next to calculate free cash flow for Rainier Printing for 2021. In addition to the information in the income statement, assume that Rainier had $580,000 in capital expenditures and $380,000 in working capital investments during 2021. Rainier Printing Income Statement January 1 to December 31, 2021 ($ thousands) Net sales Cost of sales Gross profit Operating expense Depreciation expense Operating income Interest expense Income before tax Tax Income after tax Note: Enter your answer in thousands. Free cash flow $ 8,600 5,800 2,800 1,080 530 1,190 960 $ 768

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 12P

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Rainier Printing Income Statement
January 1 to December 31, 2021 ($ thousands)
Net sales	$ 8,600
Cost of sales	5,800
Gross profit	2,800
Operating expense	1,080
Depreciation expense	530
Operating income	1,190
Interest expense	230
Income before tax	960
Tax	192
Income after tax	$ 768

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