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1)Use the following Table to answer these questions The Spring Corporation 2018 S37.50 Net Fixed Assets $200 $220 Cost of Goods Sold$25.50 $7.50 $12.00 20%
1)Use the following Table to answer these questions The Spring Corporation 2018 S37.50 Net Fixed Assets $200 $220 Cost of Goods Sold$25.50 $7.50 $12.00 20% Category Current Assets 2017 2018 S75 $95 Category Sales Accounts Payable $40 S$63 Interest Expense Accrued Expenses S35 $42 Long-term Debt $110 $120 Tax Rate Owner's Equity a)Calculate Spring Corporation's Earnings Before Interest and Taxes for 2018 b)Calculate Spring Corporation's Operating Cash Flow for 2018 Calculate Spring Corporation's Free Cash Flow for 2018. d)Calculate Spring Corporation's Cash Flow to Creditors and Cash Flow to Shareholders for 2018. a)Your friend says a decrease in the tax rate will always increase the company's free cash flow to b)Your friend says an increase in depreciation has a positive effect on free cash flow. Is your friend c)Your friend says that negative free cash flow means that cash flow to shareholders must also be creditors. Is your friend correct or not? correct or not? negative. Is your friend correct or not
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