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 $710,000 in capital expenditures and $510,000 in working capital investments during 202 Rainier Printing Income Statement January 1 to December 31, 2021 (s thousands) $ 11,200 7,100 4,100 1,210 Net sales Cost of sales Gross profit Operating expense Depreciation expense Operating income Interest expense Income before tax Tax 660 Income after tax Note: Enter your answer in thousands. Free cash flow 2,230 360 1,870 748 $1,122

Free Cash Flow The following information is from the financial statements of Evans & Sons. Cash flow from operating activities $1,600,000 Capital expenditures 850,000 Current liabilities, beginning of year 300,000 Current liabilities, end of year 380,000 Calculate the free cash flow for Evans & Sons. $ 0

↓ The following table shows the projected free cash flows of an acquisition target. The potential acquirer wants to estimate its maximum acquisition price at an 8 percent discount rate and a terminal value in year 5 based on the perpetual growth equation with a 4 percent perpetual growth rate. Year Free cash flow 1 -950 2 3 -475 0 4 290 a. Estimate the target's maximum acquisition price. Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. > Answer is complete but not entirely correct. Maximum acquisition price $ 8,640 x 5 880 b. Estimate the target's maximum acquisition price when the discount rate is 7 percent and the perpetual growth rate is 5 percent. Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. X Answer is complete but not entirely correct. Maximum acquisition price $ 46,921 X

Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31(Millions of Dollars)   2020   2019 Sales $ 13,000   $ 11,000 Operating costs excluding depreciation   11,604     9,684 Depreciation and amortization   340     320     Earnings before interest and taxes $ 1,056   $ 996 Less interest   180     100     Pre-tax income $ 876   $ 896 Taxes (25%)   219     224 Net income available to common stockholders $ 657   $ 672 Common dividends $ 201   $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)   2020   2019 Assets Cash $ 550   $ 500 Short-term investments   110     100 Accounts receivable   2,750     2,500 Inventories   1,450     1,300     Total current assets $ 4,860   $ 4,400 Net plant and equipment   3,850     3,500 Total assets $ 8,710   $ 7,900   Liabilities and Equity Accounts payable $ 1,100   $ 1,000 Accruals   550…