Question
1. Use the following financial statements for LaForge Systems, Inc. to calculate the companys FCFF and FCFE for 2018. What are the adjustments to FCFF
1. Use the following financial statements for LaForge Systems, Inc. to calculate the companys FCFF and FCFE for 2018. What are the adjustments to FCFF which result in FCFE?
| Statement of Cash Flows (in $ millions) |
| 2008 |
| Net income | 285 | |
| Depreciation | 180 | |
| Accounts receivable | -39 | |
| Inventories | -39 | |
| Accounts payable | 22 | |
| Accrued taxes & expenses |
| 23 |
| Cash from operations | 432 | |
| Purchases of fixed assets |
| -349 |
| Cash from investing | -349 | |
| Notes payable | 10 | |
| Long-term debt | 40 | |
| Dividends |
| -90 |
| Cash from financing | -40 | |
| Change in cash | 43 | |
| Cash- beginning of year |
| 210 |
| Cash- end of year | 253 | |
| Supplemental: | ||
| Cash interest paid | 130 | |
| Cash income taxes paid | 190 |
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