TSW Inc. had the following data for last year: Net income = $800 Net operating profit after

Question:

TSW Inc. had the following data for last year:
Net income = $800
Net operating profit after taxes (NOPAT) = $700
Total assets = $3,000
Total operating capital = $2,000.
Information for the just-completed year is as follows:
Net income = $1,000
Net operating profit after taxes (NOPAT) = $925
Total assets = $2,600
Total operating capital = $2,500.
How much did the firm generate during the just-completed year?

Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...