Use the following income statements and balance sheets to calculate Garnet Inc.'s free cash flow for 2011.
Question:
Use the following income statements and balance sheets to calculate Garnet Inc.'s free cash flow for 2011.
GarnetInc.
Free Cash FlowFree cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Income State ment 2011 2010 $500,0 Net sales $530.0 Costs (except depreciation) 400.0 380.0 Depreciation Total operating costs 30.0 25.0 S430.0 $405.0 Earnings before interest and taxes (EBIT) 100.0 95.0 Less interest 23.0 21.0 $ 77.0 $ 74.0 Earnings before taxes Taxes (40%) 30.8 29.6 $ 46.2 S 44.4 Net income Balance Sheet 2011 2010 Assets S 28.0 S 27.0 Cash Marketable securities 69.0 66.0 Accounts receivable 84.0 80.0 Inventories 112.0 106.0 S293.0 S279.0 Total current assets Net plant and equipment 281.0 265.0 Total assets $574.0 $544.0 Liabilities and Equity $ 56.0 $ 52.0 Accounts payable Notes payable 138.0 130.0 Accruals 28.0 $222.0 28.0 $210.0 Total current liabilities Long-term bonds 173.0 164.0 Common stock 100.0 100.0 Retained earnings 79.0 70.0 Common equity Total liabilities and equity S179.0 $170.0 $544.0 $574.0
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NOPAT EBIT1T 100104 60 Net operating WC10 27 80 106 ...View the full answer
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Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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