Question
A recent annual income statement for Stone Creek Roofing is shown below. Net sales$5,000Cost of sales3,200Gross profit1,800Operating expense800Depreciation expense200Operating income800Interest expense100Income before tax700Tax175Income after tax$525
A recent annual income statement for Stone Creek Roofing is shown below.
Net sales$5,000Cost of sales3,200Gross profit1,800Operating expense800Depreciation expense200Operating income800Interest expense100Income before tax700Tax175Income after tax$525
Assume that during the year, Stone Creek spent $180 on new capital equipment and increased current assets net of non-interest-bearing current liabilities by $120. What was Stone Creek's free cash flow in this year?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
