1. During 2006, LSP Corporation had EBIT of $900,000, a change in net fixed assets of $400,000, a change in NWC of $100,000, a depreciation expense of $50,000, and a tax rate of 30%. Based on this information, Calculate LSP free cash flow.*

$ 350,000

$ 130,000

$ 400,000

$ 0

None of the above

2. Assume that Icon Co. 2014 current assets totaled for $80,000, they paid out $32,000 in the form of account payable and $8,000 as accruals and $10,000 in notes payable and in 2015 they had a NWC of $40,000. Calculate the change in net working capital.*

$ 40,000

$ 0

$ 30,000

$45,000

None of the above

3. PLI Corporation had net fixed assets of $2,500,000 at the end of 2006 and $1,800,000 at the end of 2005. In addition, the firm had a depreciation expense of $300,000 during 2006. Using this information, how much was PLI's net fixed asset investment for 2006?*

$ 1,000,000

$ 700,000

$ 400,000

$ 380,000

None of the above