Jennifer runs a gift store. Her sales last year were $280,000. Cost of goods sold were...

 

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Jennifer runs a gift store. Her sales last year were $280,000. Cost of goods sold were $170,000. Depreciation was $12,000. She paid interest of $6,500. At the beginning of the year, her longer term assets were valued at $600,000. During the year she invested in new display cases. At the end of the year, her longer term assets were valued at $645,000. At the beginning of the year, her net working capital was $14,000. At the end of the year, it was $15,500. The taxation rate is 30%. How much free cash flow did Jennifer's store generate? Jennifer runs a gift store. Her sales last year were $280,000. Cost of goods sold were $170,000. Depreciation was $12,000. She paid interest of $6,500. At the beginning of the year, her longer term assets were valued at $600,000. During the year she invested in new display cases. At the end of the year, her longer term assets were valued at $645,000. At the beginning of the year, her net working capital was $14,000. At the end of the year, it was $15,500. The taxation rate is 30%. How much free cash flow did Jennifer's store generate?

Answer rating: 100% (QA)

SOLUTION To calculate the free cash flow generated by Jennifers gift store we need to determine the ... View the full answer