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A firm has after rate income tax last year of $3.0. It’s depreciation expenses were 0.2...

A firm has after rate income tax last year of $3.0. It’s depreciation expenses were 0.2 million, and its total cash flow was $3.0 million. What happened to the net working capital during the year.

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Expert Solution

FCF = after-tax income + depreciation - NWC

$3.0 million = $3.0 million + $0.2 million - NWC

NWC = $3.0 million + $0.2 million - $3.0 million

NWC = $0.2 million

jeff jeffy answered 2 years ago
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