CashisTrash Inc. reported the following numbers for 2021 and 2022: 2021 2022 Net Income 100 120 A/R
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CashisTrash Inc. reported the following numbers for 2021 and 2022: 2021 2022 Net Income 100 120 A/R 78 96 Inventories 88 74 A/P 22 55 PPE 300 340 Borrowings 70 50 Interest expense 5 8 Common Stock 180 200 Using the above data alone, Calculate FCF to equity for 2022. [Hint: First calculate Cash Flow from Operations adjusted for interest expense. Keep in mind increases (decreases) to assets decrease (increase) cash flows; increases to liabilities increase cash flows. You should be able to get Cash from operations adjusted for interest expense as 157. Then calculate FCF to debt and equity. Finally calculate FCF to equity]
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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