Consider the following data with regards to free cash flow (FCF) Revenue $106,889 Cash operating expenses $78,412 Depreciation expense $884 Effective tax rate 22 Incremental investment in operating net working capital $73 Incremental investment in long term operating assets $2,252 If the incrementa...

The Free Cash Flow FCF is calculated using the following formula FCF Aftertax operating income Depre ...

Consider the following data with regards to free cash flow (FCF): Revenue = $106,889 Cash operating expenses

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Consider the following data with regards to free cash flow (FCF):

Revenue = $106,889
Cash operating expenses = $78,412
Depreciation expense = $884
Effective tax rate = 22%
Incremental investment in operating net working capital = $73
Incremental investment in long-term operating assets = $2,252

If the incremental investment in long-term operating assets was to decrease by 7% but everything else remains as shown above, how much would free cash flow change? Assume no other factors change.

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Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Dec 22, 2023 04:31 AM

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Consider the following data with regards to free cash flow (FCF): Revenue = $106,889 Cash operating expenses

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The Free Cash Flow FCF is calculated using the following formula FCF Aftertax operating income Depre... View the full answer

Financial Accounting and Reporting a Global Perspective

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