TSW Inc. had the following data for last year: Earnings before interest and taxes= $1,000; Cash =$200; Short-term investments = $150; Inventory = $500; accounts receivables = $300; accounts payable = $300; accruals = $100; short-term loan = $250; fixed assets = $2,000. Information for the current year is as follows: Earnings before interest and taxes = $1,500; Cash =$150; Short-term investments = $200; Inventory = $600; accounts receivables = $450; accounts payable = $250; accruals = $50; short-term loan = $350; Total fixed assets = $2,200; Tax rate = 30%. 

How much free cash flow did the firm generate during the current year? Show detail calculations.

Answer rating: 100% (QA)

To calculate the free cash flow generated by the firm during the current year we need to consider th... View the full answer