Question
A company has the following income statement and balance sheet: INCOME STATEMENT Sales $1,000 Costs 600 Depreciation 240 EBIT $ 160 Interest expens 60 EBT
A company has the following income statement and balance sheet:
INCOME STATEMENT
Sales $1,000
Costs 600
Depreciation 240
EBIT $ 160
Interest expens 60
EBT $ 100
Taxes (40%) 40
Net income $ 60
BALANCE SHEET
Cash $ 20 Accounts payable $ 30
Short-term investments 30 Accruals 50
Accounts receivable 20 Notes payable 10
Inventory 60 Current liabilities 90
Current assets 130 Long-term debt 70
Gross fixed assets 140 Common stock 30
Accumulated deprec. 40 Retained earnings 40
Net fixed assets 100 Total common equity 70
Total assets $230 Total liab. & equity $230
If the Total Operating Capital FOR THE LAST YEAR WAS $120, what is the current year's Free Cash Flow?
a. | $90 | |
b. | $105 | |
c. | $70 | |
d. | $96 |
5.25 points
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