EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 4, Problem 1P
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To determine: Company B’s after-tax cash flow for last year.
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Company DotThrive reported the following financial results.
Operating income is $94.98 million and depreciation and amortization is $6.12 million. The company spent $13.99 million buying new equipment and sold $3.58 million old equipment (this is the after-tax salvage). Net working capital increased by $1.31 million from previous year. The company's tax bracket is 21%.
What's the company's Free Cash Flow (FCF) for the year?
Last year, Blue Lake Mines, Inc., had earnings after tax of $550,000. Included in its expenses were depreciation of $240,000 and deferred taxes of $110,000. The company also purchased new capital equipment for $280,000 last year. Calculate Blue Lake's after-tax cash flow for last year. Round your answer to the nearest dollar.
Company DotThrive reported the following financial results.
Operating income is $61.32 million and depreciation and amortization is $6.84 million. The company spent $11.69 million buying new equipment and sold $4.50 million old equipment (this is the after-tax salvage). Net working capital increased by $2.63 million from previous year. The company's tax bracket is 21%.
What's the company's Free Cash Flow (FCF) for the year?
Note: the unit of your answer should be in millions of dollars, with 2 decimal points.
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