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Balance Sheet as of December 31, 2017 & 2018 Assets: 2017 2018 Total current assets 26,000 32,120 Total current liabilities 16,000 17,000 Income Statement for
| Balance Sheet as of December 31, 2017 & 2018 |
| Assets: | 2017 | 2018 |
| Total current assets | 26,000 | 32,120 |
| Total current liabilities | 16,000 | 17,000 |
| Income Statement for 12 months ending December 31, 2018 |
| Income from operations | 17,000 |
| Interest expense | 1,800 | |
| Net income before taxes | 15,200 |
| Income taxes | 6,080 | |
| Net Income | $9,120 |
| Net Cash Flows from Operations | $13,120 |
| Net Cash Flows from Investing PP&E | ($2,000) |
| Net Cash Flows from Financing | ($8,000) |
| Ending cash | $5,120 |
| Additional Valuation Assumptions: | ||
| Interest rate on debt capital | 6.00% | |
| Tax rate | 25.00% | |
| Cost of equity capital | 14.00% | |
| Terminal growth rate in cash flows | 3.00% |
The question is to calculate the free cash flows to the firm as of December 31 2018. The answer for FCFF is $15,193. Please show the steps on how to reach this number?
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The Social Profit Handbook
Authors: David Grant
1st Edition
1603586040, 978-1603586047
