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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 | 1,640 | Current assets | 480 | 670 |
| Cost of sales | 808 | Net fixed assets | 172 | 344 |
| Operating expenses | 136 | Current liabilities | 290 | 370 |
| Depreciation | 86 | |||
| Interest expense | 50 | |||
| Earnings before taxes | 560 | |||
| Tax | 224 | |||
| Net income | 336 |
| ||
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