Question

In: Finance

Consider the following financial information pertaining to a firm in a particular year: Rev 1,000 COGS...

Consider the following financial information pertaining to a firm in a particular year:

Rev

1,000

COGS

400

R&D

50

SGA (excl. Depr)

100

Depreciation

60

Interest Exp

20

Taxes

110

Dividends

130

Change in Inventory

-25

Change in Acct. Pay.

15

Change in Acct. Rec.

30

Change in Cash/Secu.

0

Plant & Equip (new)

225

Shares Issued

N/A

Change in Debt

N/A
  1. Using this information, please calculate and report the following items:

Gross Profit

EBIT

NI

Operating CF

Investing CF

Free CF
  1. Also, using only one sentence, remark on additional financing requirements (if any).

Answer

Solutions

Expert Solution

From the given details, Income statement has been prepared as in the below screenshot. All the values are being filled in for your reference.

For Operating Cash Flow and Investing Cash Flow, the screenshot provides the calculations part. Also Free Cash Flow has also being calculated in the below mentioned screenshot.

jeff jeffy answered 2 weeks ago
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