Question: Based on the below income statement and balance sheet; compute the expected free cash flow to the firm in 2009. Income Statement 2009 2008 actual

Based on the below income statement and balance sheet; compute the expected free cash flow to the firm in 2009. Income Statement 2009 2008 actual Forecast Sales Cost of 760 410 650 320 goods sold Gross Profit 350 120 330 90 Depreciation EBIT Interest 230 50 240 70 expenses Pre-tax earnings 180 54 170 51 Taxes (30%) Net Income 126 119 2008 actual 2009 Forecast 70 439 509 2008 actual 65 495 560 110 190 590 890 ABC Corp. Balance Sheet 2009 Forecast Cash Accounts 90 215 Receivables 650 955 Inventory Current assets Fixed Assets 1,300 Accu. Depreciation (200) Total assets 2,055 1,180 (160) 1,910 Accounts payables Short- term debts Current liabilities Long-term debt Common stock Retained earnings Total liabilities and owners' equity 320 900 326 2,055 250 900 200 1,910 1) $81 2) $92 3) $101 4) $108
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
