Question: During the year, Xero, Inc., experienced an increase in net fixed assets of $300,000 and had depreciation of $200,000. It also experienced an increase in

During the year, Xero, Inc., experienced an increase in net fixed assets of $300,000 and had depreciation of $200,000. It also experienced an increase in current assets of $150,000 and an increase in accounts payable and accruals of $75,000. If operating cash flow (OCF) for the year was $700,000, calculate the firm’s free cash flow (FCF) for the year.

Step by Step Solution

★★★★★

3.38 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

FCF OCF net fixed asset investment NFAI net current asset i... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

96-B-F-M-F (130).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

AN increase in net operating income (NOPAT) will cause which of the following? a. Increase on the return of net operating assets b. Decrease on the return in net operating assets c. No change in...

If the book value of the net fixed assets of New Horizon Products is only at 80% of its current market value, and Metallic Creations Inc. decides to step up the basis of the assets for depreciation...

Koninklijke BolsWessanen NV has fixed costs of 300 000 and a variable-cost percentage of 80%. The company earns net profit of 84 000 in 2008. The income tax rate is 40%. Required Calculate (1)...

E4-3 Determine the operating cash flow (OCF) for Kleczka LLC, based on the following data. (All values are in thousands of dollars.) During the year the firm had sales of $2,500, cost of goods sold...

E4-1 The installed cost of a new computerized controller was $65,000. Calculate the depreciation schedule by year assuming a recovery period of 5 years and using the appropriate MACRS depreciation...

During the year, Xero, Inc., experienced an increase in net fixed assets of $296,000 and had depreciation of $205,000. It also experienced an increase in current assets of $146,000 and an increase in...

E3-1 You are a summer intern at the office of a local tax preparer. To test your basic knowledge of financial statements, your manager, who graduated from your alma mater 2 years ago, gives you the...

E4-3 Determine the operating cash flow (OCF) for Kleczka LLC, based on the following Ed-4 data. (All values are in thousands of dollars.) During the year the firm had sales of $2,500, cost of goods...

Bananas are to be cooled from 28oC to 12oC at a rate of 1140 kg/h by a refrigerator that operates on a vapor-compression refrigeration cycle. The power input to the refrigerator is 8.6 kW. Determine...

Another way in which energies of isomers may be compared is by their heats of combustion. Match the heat of combustion with the appropriate diene. Dienes: 1,2-Pentadiene, (E)-1,3-pentadiene,...

Given that the quadrilateral ABCD is similar to the quadrilateral PQRS, find the values of the unknowns in the quadrilaterals. 12 cm 8 cm A B 6 cm P 85 D C S R

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Cash 50,000 Finished goods inventory...

Which of the following is an advantage of a sole proprietorship over other business forms? A) tax-exempt treatment of fringe benefits B) the deduction for compensation paid to the owner C) ease of...

Discuss the business added values of implementing adequate general security and controls in Accounting Information Systems.

In what situations is the mode typically used?

Anson Construction wants to raise $5 million for a new construction project. The company is now evaluating two issue alternatives: (1) a new issue of preferred stock with face value of $100 that pays...

Erwin Footwear wishes to assess the value of its Active Shoe Division. This division has debt with a market value of $12,500,000 and no preferred stock. Its weighted average cost of capital is 10%....

(1) Let f : [n] r [n] be a permutation. Axed point of f is an element x E [n] such that f(x) = x. Now consider random permutations of [n] and let X be the random variable which represents the number...

Need help with statistics. The following table shows samples of the food bills for patrons at two restaurants (measured in dollars, before taxes) You could copy and paste these data into a workbook,...

GreenStudio Yoga is considering keeping their virtual studio. The percentage of young adults practicing yoga and the average frequency per week are to be determined. The manager wants to be 95%...