Question: Below is Larry Ltd's income statement and two balance sheets: Larry Ltd Larry Ltd Income Statement for Balance Sheet year ending 30th June 2021 as

Below is Larry Ltd's income statement and
Below is Larry Ltd's income statement and two balance sheets: Larry Ltd Larry Ltd Income Statement for Balance Sheet year ending 30th June 2021 as at 30th June $m 2021 2020 Sales 600 $m Sm COGS 120 Inventory 65 60 Depreciation 40 Trade Debtors 10 14 Rent expense 12 Office Supplies 3 2 Interest expense 8 PPE 500 400 Taxable Income 420 Total assets 578 476 Tax at 30% 126 Net income 294 Trade Creditors 13 6 Bond liabilities 210 300 Contributed equity 150 150 Retained profits 205 20 Total L and OE 578 476 A. Calculate the increase in Net Working capital. (1 mark) B. Calculate the net capital expenditure. (1 mark) C. Calculate the firm free cash flow (FFCF or Cash flow from assets CFFA). (1 mark) D. Referring to the above example, suggest what business activity may have caused the change in capital expenditure. (1 mark) Type your answers in the text box below, ensuring that you clearly label each of the 4 answers (A, B, C, D)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!