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The following information has been extracted from the financial statements of a company. Use it to...

The following information has been extracted from the financial statements of a company. Use it to answer the 4 questions that follow it. When answering the questions (filling in the blanks), DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign in front of first digit for negative numbers. Round to the nearest dollar.

Earnings before interests and taxes: EBIT in 2020 = 400
Tax rate: T =   30%
Accumulated depreciation in balance sheet of 2019 = 50
Accumulated depreciation in balance sheet of 2020 = 60
Net Fixed Assets in 2019 = 1,200
Net Fixed Assets in 2020 = 1,700
Other Long-Term assets in 2019 = 0
Other Long-Term assets in 2020 = 0
Net operating working capital (NOWC) in 2019 = 20
Current assets in balance sheet of 2020 = 20
Current liabilities in balance sheet of 2020 = 30

1. What is the Net Cash Flow (NFC) for 2020?

2. What is the Investment in Gross Fixed Assets for 2020?

3. What is the investment in net operating working capital (Investment NOWC) for 2020?

4. What is the Free Cash Flow (FCF) for 2020?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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