Consider the following data with regards to free cash flow (FCF): Revenue = $106,608 Cash operating expenses
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Question:
Consider the following data with regards to free cash flow (FCF):
- Revenue = $106,608
- Cash operating expenses = $65,511
- Depreciation expense = $950
- Effective tax rate = 23%
- Incremental investment in operating net working capital = $73
- Incremental investment in long-term operating assets = $3,820
If the incremental investment in operating net working capital was to increase by 6% but everything else remains as shown above, how much would free cash flow change? Assume no other factors change.
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
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