Question: An analyst prepared reformulated balance sheets for the year 2009 and 2008 follows (in millions of dollars): The firms reported $100 million in comprehensive income
An analyst prepared reformulated balance sheets for the year 2009 and 2008 follows (in millions of dollars):
.png)
The firms reported $100 million in comprehensive income for 2009 and no net financial income or expense.
(a) Calculate the free cash flow for 2009.
(b) How was the free cash flow disposed of?
(c) How can a firm with financial assets and financial liabilities have zero net financial income or expense?
2009 2008 $640 250 890 170 20 700 $890 Operating assets Financial assets $590 110 700 130 30 540 $700 Financial debt Operating labilities Common equity
Step by Step Solution
3.33 Rating (156 Votes )
There are 3 Steps involved in it
a Use the free cash flow generation equation C I OI D NOA As there was no net financial income or ex... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
99-B-A-F-A (319).docx
120 KBs Word File
