You are considering an investment in Fivestone, Inc. and want to evaluate the firm’s free cash flow. From the income statement, you see that Fivestone earned an EBIT of $32 million, paid taxes of 25% ($8 million), and its depreciation expense was $3 million. Fivestone’s gross fixed assets increased by $16 million from 2016 to 2017. The firm’s current assets increased by $10 million

Calculate Firestone’s operating cash flows, investment in operating capital and free cash flow for 2017.

Answer rating: 100% (QA)

Five stones operating cash flow was OCF SIT Taxes Depreciation 32m 8m t 3m 27m Investmen... View the full answer