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Calculate free cash flow to the firm (FCFF) based on the Statement of Cash Flows and other information presented below. Statement of Cash Flows
Calculate free cash flow to the firm (FCFF) based on the Statement of Cash Flows and other information presented below. Statement of Cash Flows Operating activities Net Income $345 Adjustments Depreciation expense Changes in working capital Accounts receivable 150 (95) Inventories Accounts payable (130) 60 Accrued taxes and expenses 25 Cash provided by operating activities $355 Investing activities Purchases of fixed assets (175) Cash provided by investing activities -$175 Financing activities Notes payable Long-term financing issuances Common stock dividends Cash provided by financing activities Cash and equivalents increase (decrease) Cash and equivalents at beginning-of-year Cash and equivalents at end-of-year Other information: Interest expense Tax rate 50 300 (140) $210 $390 200 $590 $90 40%
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