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A. Calculate the firm's operating cash flow for the year ended December 31 2012 B. Calculate the firm's free cash flow for the year ended
A. Calculate the firm's operating cash flow for the year ended December 31 2012
B. Calculate the firm's free cash flow for the year ended December 31 2012
C. Interpret, compare, and contrast your cash flow estimates in parts a and b.
***SHOW ALL EQUATIONS***
December 31, 2011 Assets SMG Industries Balance Sheets ($ in millions) December December Liabilities and December 31, 2012 31, 2011 Stockholders' Equity 31, 2012 $ 3.500 $ 3,000 Accounts payable $ 3,600 Notes payable 4.800 3,800 3,200 Accruals 1,200 Total current liabilities $ 9,600 4,000 3,800 Long-term debt $ 6,000 4,900 4,800 Common stock $11,000 Retained earnings 6,400 $16,200 $14.800 Total stockholders equity $17.400 $31.500 $30,100 Total liabilities and stockholders' equity $33.000 Cash Marketable securities Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets $ 3,500 4,200 1.300 $ 9,000 $ 6,000 $11.000 5,800 $16,800 $31,800 14,700 13.100 $16,800 $33.000 $17,000 $31.800
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