Use the income statement shown next to calculate the free cash flow for Rainier Printing for 2021.
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Question:
Use the income statement shown next to calculate the free cash flow for Rainier Printing for 2021. In addition to the information in the income statement, assume that Rainier had $660,000 in capital expenditures and $460,000 in working capital investments during 2021.
Rainier Printing Income Statement | |
January 1 to December 31, 2021 ($ thousand) | |
Net sales | $ 10,200 |
---|---|
Cost of sales | 6,600 |
Gross profit | 3,600 |
Operating expense | 1,160 |
Depreciation expense | 610 |
Operating income | 1,830 |
Interest expense | 310 |
Income before tax | 1,520 |
Tax | 456 |
Income after tax | $ 1,064 |
Note: Enter your answer in thousands.
What is the free cash flow?
is NOT 554,000
Related Book For
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
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