Presented below are financial statements for Obsessive Ltd. These include the 2024 forecasts for both the...

 

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Presented below are financial statements for Obsessive Ltd. These include the 2024 forecasts for both the income statement balance sheet and the most recent 2023 actuals for the balance sheet. The company has no excess cash or short-term debt. Income statement Operating revenue Operating expenses Depreciation EBIT Interest expense Pre-tax profit Forecast 2024 300 -245 -24 31 -3 28 -8.4 19.6 Tax expense at 30% Net profit after tax Balance sheet Current assets Net property, plant and equipment Total assets Current liabilities Long-term debt Actual 2023 80 100 180 30 50 80 50 50 100 Total liabilities Share capital Retained earnings Total equity What is the forecasted 2024 free cash flow to the firm for Obsessive Ltd? Forecast 2024 70 136 206 40 53 93 50 63 113 Presented below are financial statements for Obsessive Ltd. These include the 2024 forecasts for both the income statement balance sheet and the most recent 2023 actuals for the balance sheet. The company has no excess cash or short-term debt. Income statement Operating revenue Operating expenses Depreciation EBIT Interest expense Pre-tax profit Forecast 2024 300 -245 -24 31 -3 28 -8.4 19.6 Tax expense at 30% Net profit after tax Balance sheet Current assets Net property, plant and equipment Total assets Current liabilities Long-term debt Actual 2023 80 100 180 30 50 80 50 50 100 Total liabilities Share capital Retained earnings Total equity What is the forecasted 2024 free cash flow to the firm for Obsessive Ltd? Forecast 2024 70 136 206 40 53 93 50 63 113

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Lets calculate each component EBIT Earnings Before Interest and Taxes 31 million Tax Expense 30 of P... View the full answer