Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | 1,190 | Current assets | 330 | 445 |
Cost of sales | 718 | Net fixed assets | 112 | 224 |
Operating expenses | 106 | Current liabilities | 215 | 295 |
Depreciation | 56 | |||
Interest expense | 50 | |||
Earnings before taxes | 260 | |||
Tax | 104 | |||
Net income | 156 |
Note: Round your answer to the 1000s place.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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