Question
Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that follows. Assume that all current liabilities are non-interest-bearing liabilities
Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that follows. Assume that all current liabilities are non-interest-bearing liabilities and that no fixed assets were sold or disposed of during 2017. (Round your answer to 1 decimal places.)
| Monarch Textiles, Inc. ($ thousands) | ||||||||
| Income statement | Selected balance sheet items | |||||||
| 2017 | 2016 | 2017 | ||||||
| Sales | 1,190 | Current assets | 330 | 445 | ||||
| Cost of sales | 730 | Net fixed assets | 112 | 224 | ||||
| Operating expenses | 115 | Current liabilities | 215 | 295 | ||||
| Depreciation | 56 | |||||||
| Interest expense | 50 | |||||||
| Earnings before taxes | 239.00 | |||||||
| Tax | 95.60 | |||||||
| Net income | 143.40 | |||||||
Free Cash Flow =
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting A Focus on Ethical Decision Making
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
5th edition
978-0324663853
