Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is a recent income statement for Spring Valley Conservation Technologies, Inc. Spring Valley Conservation Technologies Inc. Income Statement ($000s). For the year Ended December

Below is a recent income statement for Spring Valley Conservation Technologies, Inc. Spring Valley Conservation Technologies Inc. Income Statement ($000s). For the year Ended December 31,2021. Consulting Fees $920, Operating Expenses (549), Depreciation Expense (30). Earnings Before Interest and Taxes $341, Interest expense ($56), Earnings Before tax 285, Tax @ 20% ($57), Net Income $228. Calculate Spring Valley Conservation Technologies' free cash flow in this year assuming it spent $64 on capital equipment and increased working capital by $72 (All figures in $000s). Formula: free cash flow= EBIT (1-Tax Rate) + Depreciation - Fixed Asset Investment - Investment in Working Capital.


A. $195,300


. B. $263,000. 


C. $166,800. 


D. $74,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below Spring Valley Conservation Technologies ... 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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.

9th Canadian Edition, Volume 2

470964731, 978-0470964736, 978-0470161012

More Books

Students also viewed these Accounting questions