Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC industries had the following operating results for last year: sales = $ 2 8 , 9 0 0 ; cost of goods sold =

ABC industries had the following operating results for last year: sales = $28,900; cost of goods sold = $24,600; depreciation expense = $1,700; interest expense = $1,400; dividends paid = $1,000. At the beginning of the year, net fixed assets were $14,300, current assets were $8,700, and current liabilities were $6,600. At the end of the year, net fixed assets were $23,900, current assets were $9,200, and current liabilities were $7,400. The tax rate for last year was 34 percent. Assume there is no short term investments and notes payable. What was the free cash flow for last year?
Question options:
(a)- $7584
(b)- $2610
(c) $2610
(d) $7584

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analysis For Financial Management

Authors: Robert C. Higgins

10th International Edition

007108648X, 9780071086486

More Books

Students also viewed these Finance questions

Question

Define Administration and Management

Answered: 1 week ago

Question

Define and discuss the nature of communication

Answered: 1 week ago

Question

Define and discuss the nature of culture

Answered: 1 week ago