Question
Calculate free cash flow for 2021 for Monarch Textiles, Incorporated, based on the financial information that follows. Assume that all current liabilities are non-interest-bearing liabilities
Calculate free cash flow for 2021 for Monarch Textiles, Incorporated, 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 2021.
| Monarch Textiles, Incorporated ($ thousands) | ||||
| Income statement | Selected balance sheet items | |||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | ||
| Sales | 1,670 | Current assets | 490 | 685 |
| Cost of sales | 814 | Net fixed assets | 176 | 352 |
| Operating expenses | 138 | Current liabilities | 295 | 375 |
| Depreciation | 88 | |||
| Interest expense | 50 | |||
| Earnings before taxes | 580 | |||
| Tax | 232 | |||
| Net income | 348 | |||
Note: Round your answer to the 1000s place.
What is the free Cash flow ?
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Financial Statement Analysis
Authors: Charles H. Gibson
13th International Edition
1133189407, 9781133189404
