Question: Last year China Robotics Ltd . had Tk . 5 million in operating income ( EBIT ) . Its depreciation expense was Tk . 1

Last year China Robotics Ltd. had Tk.5 million in operating income (EBIT). Its depreciation expense was Tk.1 million, its interest expense was Tk.1 million, and its corporate tax rate was 40%. At year-end, it had Tk.14 million in current assets, Tk.3 million in accounts payable, Tk.1 million in accruals, and Tk.15 million in net plant and equipment. Assume that China's only noncash item was depreciation.
(i) What was its net working capital (NWC)?
(ii) China had Tk12 million in net plant and equipment the prior year. Its net working capital has remained constant over time. What is the company's free cash flow (FCF) for the year that just ended?
Last year China Robotics Ltd . had Tk . 5 million

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