Below is Larry Ltd's income statement and two balance sheets: Larry Ltd Income Statement for year...

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Below is Larry Ltd's income statement and two balance sheets: Larry Ltd Income Statement for year ending 30th June 2021 Sales COGS Depreciation Rent expense Interest expense Taxable Income Tax at 30% Net income $m 600 120 40 12 8 420 126 294 Inventory Trade Debtors Office Supplies PPE Total assets Trade Creditors Bond liabilities Contributed equity Retained profits Total L and OE Larry Ltd Balance Sheet as at 30th June 2021 $m 65 10 3 500 578 13. 210 150 205 578 2020 $m 60 14 2 400 476 6 300 150 20 476 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) Below is Larry Ltd's income statement and two balance sheets: Larry Ltd Income Statement for year ending 30th June 2021 Sales COGS Depreciation Rent expense Interest expense Taxable Income Tax at 30% Net income $m 600 120 40 12 8 420 126 294 Inventory Trade Debtors Office Supplies PPE Total assets Trade Creditors Bond liabilities Contributed equity Retained profits Total L and OE Larry Ltd Balance Sheet as at 30th June 2021 $m 65 10 3 500 578 13. 210 150 205 578 2020 $m 60 14 2 400 476 6 300 150 20 476 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)

Answer rating: 100% (QA)

A Calculate the increase in Net Working Capital Net Working Capital Current Assets Current Liabiliti... View the full answer