Question
1. Calculate Operating Cash Flow and Free Cash Flow for the company described below. Traffic Management Systems Inc. (TMS, Millions of Dollars) 2020 2021 Sales
1. Calculate Operating Cash Flow and Free Cash Flow for the company described below.
Traffic Management Systems Inc. (TMS, Millions of Dollars)
2020 2021
Sales $ 3,335.0 $ 3,540.0
Cost of Goods Sold 2,175.0 2,392.0
Gross Margin 1,160.0 1,148.0
Depreciation Expense 480.0 495.0
EBIT 680.0 653.0
Interest Expense 232.0 241.0
EBT 448.0 412.0
Income Tax Expense 145.0 120.0
Net Income $ 303.0 $ 292.0
Dividends $ 85.0 $ 85.0
Income Tax Rate 32.50% 29.25%
12/31/20 12/31/21
Cash $ 110.0 $ 90.0
Receivables 238.0 224.0
Inventory 450.0 415.0
Current Assets 798.0 729.0
Gross Fixed Assets 5,740.0 6,135.0
Accumulated Depreciation ( 1,200.0) ( 1,695.0)
Net Fixed Assets 4,540.0 4,440.0
Total Assets $ 5,338.0 $ 5,169.0
Accounts Payable $ 248.0 $ 158.0
Long-Term Debt 2,320.0 2,034.0
Capital Stock + Paid-In Cap. 1,100.0 1,100.0
Retained Earnings 1,670.0 1,877.0
Total Liabilities and Equity $ 5,338.0 $ 5,169.0
What was TMS Operating Cash Flow for 2021 (in millions of whole dollars)?
What was TMS Free Cash Flow for 2021 (in millions of whole dollars)?
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Cost Of Capital In Managerial Finance
Authors: Dennis Schlegel
2015th Edition
3319151347, 978-3319151342
