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According to Accounting Equation, AL+E, Assets of a Firm belongs to Stockholders and Creditors. This Means Cash Flows generated from Assets (CFA) AKA Free Cash
According to Accounting Equation, AL+E, Assets of a Firm belongs to Stockholders and Creditors. This Means Cash Flows generated from Assets (CFA) AKA Free Cash Flow (FCF) should also belong to Stockholders & creditors. The following data from Income Statement of ABC is provided to you for figuring out the CFA AKA FCF ABC INCOME STATEMENT for 2018 Data The Firm Made LT Investments of = $ 85,000 And ST Investments of $ 28,700 Based on your calculations, the CFA AKA FCF Net Sales 3 600.000.00 2 3 4 5 0 7 COGS Selling Epe Admin Expe Depreciation Int pe Tax Rates $ 200,000.00 $ 120,000.00 $ 150,000.00 $ 55,000.00 $ 15,000.00 21% O $4,000 Ob 1.500 O 0 5 10.500 1 Net Sales = $ 650,000.00 2 3 4 NAWN COGS Selling Exp= Admin Exp Depreciation Int Ep- Tax Rates $ 260,000.00 $ 120,000.00 $ 150,000.00 $ 55,000.00 $ 15,000.00 21% 5 6 7 O a. $ 4,500 b. $ 94,500 c. $ 19,500 od. $ 109,500 $ 65,000
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