Question: Cal Cak Cale Given Given Given Cale Given Given Cale Calc Cale Cale Cak Given Cale Cal Cak Cale Use the free cash flow

Cal Cak Cale Given Given Given Cale Given Given Cale Calc Cale Cale Cak Given Cale Cal Cak Cale Use the free cash flow framework below for this question. Income Statement Part Free Cash Flow Framework Part 1 Earnings before interest and taxes x(1-tax rate) Net Operating Profit After Taxes (NOPAT) Balance Sheet Part Free Cash Flow Framework Part 2 Cash Accounts receivable Inventories Operating current assets Accounts payable Accruals Operating current liabilities Operating current assets Operating current liabilities Net Operating Working Capital (NOWC) Net Operating Working Capital (NOWC) Net plant and equipment Total net operating capital (INOC) Income Statement Part minus Balance Sheet Part Part 1 minus Part 2 Net Operating Profit After Taxes (NOPAT) Investment in total net operating capital TNOC n- (TNOC n-1) Free Cash Flow (FCF) What's left for investors 650 60% 390 550 2,750 1,650 4,950 1,100 550 1,650 4,950 1,650 3,300 3,300 4,000 7,300 390 100 290 n-1 500 2,500 1,500 4,500 1,000 500 1,500 4,500 1,500 3,000 3,000 4,200 7,200 Income Statement Part Balance Sheet Part Change 10,00% 10.00% 10.00% 10,00% 10,00% 10,00% 10.00% 10,00% 10.00% 10.00% 10,00% -4.76% 1.39% What does a free cash flow framework in general tell us and what does this specific company free cash flow tell us about the company? (This question is worth 5 points.)

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