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. (Enter your answer in 1000s.)
| income statement | 2017 | |
| sales | 1640 | |
| cost of sales | 880 | |
| operating expenses | 190 | |
| depreciation | 86 | |
| interest expense | 50 | |
| earnings befor taxes | 434 | |
| tax | 173.6 | |
| net income | 260.4 | |
| selected balance sheet items | 2016 | 2017 |
| current assets | 40 | 670 |
| net fixed assets | 17 | 344 |
| current liabilities | 290 | 370 |
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Handbook Of The Economics Of Finance
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
044459406X, 978-0444594068
