A firm has the following balance sheet for year 2020 (millions of dollars): Cash $12 Accounts payable $ 108 Short-term investment 30 Accruals 72 Accounts receivable 180 Notes payable 67 Inventory 180 Long-term debt 150 Net Fixed assets 300 Common stock 50 Retained earnings 255 Total liabilities Total assets $702 and equity $702 In 2020, a firm has Sales 500 million, Cost of good solds 300 million, Operating profit (EBIT) of $150 million, NIl of 60 million and tax rate is 40%. In year 2019, a firm has $460 million of tota operating capital (i.e., Net operating working capital + net fixed assets). What is the free cash flow for year 2020?

A firm has the following balance sheet for year 2020 (millions of dollars): Cash $12 Accounts payable $ 108 Short-term investment 30 Accruals 72 Accounts receivable 180 Notes payable 67 Inventory 180 Long-term debt 150 Net Fixed assets 300 Common stock 50 Retained earnings 255 Total liabilities Total assets $702 and equity $702 In 2020, a firm has Sales 500 million, Cost of good solds 300 million, Operating profit (EBIT) of $150 million, NIl of 60 million and tax rate is 40%. In year 2019, a firm has $460 million of tota operating capital (i.e., Net operating working capital + net fixed assets). What is the free cash flow for year 2020?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 21SP: Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a....

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