The 2013 income statement for Paige's Purses shows that depreciation expense is $10 million, EBIT is $25 million, EBT is $15 million, and the tax rate is 30 percent. At the beginning of the year, the balance of gross fixed assets was $80 million and net operating working capital was $30 million. At the end of the year gross fixed assets was $100 million. Paige's free cash flow for the year was $20 million. What is their end of year balance for net operating working capital?

$10.5 million

$14 million

$20.5 million

$30.5 million

Answer rating: 100% (QA)

Free cash flow EBT1tax rate depreciation expense Change in Capital Expenditure Change in net ... View the full answer