Company XYZ's 2018 EBIT is $17,440. The tax rate is 40%. Based on the following balance...
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Company XYZ's 2018 EBIT is $17,440. The tax rate is 40%. Based on the following balance sheets, what is the XYZ's 2018 FCF? Cash AR 2017 ST invest. 48,600 $9,000 2018 Total assets Accts. payable Notes payable 632,160 Accruals $7,282 351,200 Inventories 715,200 1,287,360 Total CA 1,124,000 1,946,802 Net FA 344,800 20,000 Gross FA 491,000 1,202,950 Less: Depr 146,200 263,160 939.790 Long-term debt 2017 Common stock Ret. $145,600 136,000 Total CL 481,600 323,432 200,000 720,000 284,960 1,328,960 1,000,000 460,000 2018 203,768 $324,000 460,000 earnings Total equity $1,468,800 $2,886.592 Total L&E $1,468,800 $2,886,592 97,632 663,768 557,632 Company XYZ's 2018 EBIT is $17,440. The tax rate is 40%. Based on the following balance sheets, what is the XYZ's 2018 FCF? Cash AR 2017 ST invest. 48,600 $9,000 2018 Total assets Accts. payable Notes payable 632,160 Accruals $7,282 351,200 Inventories 715,200 1,287,360 Total CA 1,124,000 1,946,802 Net FA 344,800 20,000 Gross FA 491,000 1,202,950 Less: Depr 146,200 263,160 939.790 Long-term debt 2017 Common stock Ret. $145,600 136,000 Total CL 481,600 323,432 200,000 720,000 284,960 1,328,960 1,000,000 460,000 2018 203,768 $324,000 460,000 earnings Total equity $1,468,800 $2,886.592 Total L&E $1,468,800 $2,886,592 97,632 663,768 557,632
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Answer rating: 100% (QA)
To calculate the free cash flow FCF for Company XYZ in 2018 we need to use the formula FCF EBIT1 Tax ... View the full answer
Related Book For
Financial Management Theory And Practice
ISBN: 978-0176583057
3rd Canadian Edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
Posted Date:
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