Question
Abbreviated financial statements for Boral Corporation for 2019 are given below: 2019 ($ million) Revenues 600.0 Operating expenses 520.0 Depreciation 16.0 Earnings before interest and
Abbreviated financial statements for Boral Corporation for 2019 are given below:
2019
($ million)
Revenues 600.0
Operating expenses 520.0
Depreciation 16.0
Earnings before interest and taxes 64.0
Less Interest Expense 5.0
Less: Taxes 23.6
Equals: Net income 35.4
Addendum:
Yearend working capital 150
Principal repayment 25.0
Capital expenditures 20
Yearend working capital in 2018 was $160 million and the firms marginal tax rate is 40% in 2019. What is the Free Cash Flow to the Equity?
Select one:
a. $16.4 million
b. $41.4 million
c. $34.4 million
d. $44.4 million
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Financial Accounting Information For Decisions
Authors: Robert w Ingram, Thomas L Albright
6th Edition
9780324313413, 324672705, 324313411, 978-0324672701
