Consider the following data with regards to free cash flow (FCF): Revenue = $106,889 Cash operating expenses
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Question:
Consider the following data with regards to free cash flow (FCF):
- Revenue = $106,889
- Cash operating expenses = $78,412
- Depreciation expense = $884
- Effective tax rate = 22%
- Incremental investment in operating net working capital = $73
- Incremental investment in long-term operating assets = $2,252
If the incremental investment in long-term operating assets was to decrease by 7% 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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