Question
DMH Enterprises 2018 and 2019 balance sheets (in thousands of dollars ) are shown below: 2019 2018 Cash $102,850 $89,725 Accounts Receivable 103,365 85,527 Inventories
- DMH Enterprises 2018 and 2019 balance sheets (in thousands of dollars) are shown below:
| 2019 | 2018 |
Cash | $102,850 | $89,725 |
Accounts Receivable | 103,365 | 85,527 |
Inventories | 38,444 | 34,982 |
Total Current Assets | $244,659 | $210,234 |
Net Fixed Assets | 67,165 | 42,436 |
Total Assets | 311,824 | $252,670 |
|
|
|
Accounts Payable | $30,761 | $23,109 |
Accruals | 30,477 | 22,656 |
Notes Payable | 16,717 | 14,217 |
Total current liabilities | $77,955 | $59,982 |
Long-term debt | 76,264 | 63,914 |
Total Liabilities | $154,219 | $123,896 |
Common Stock | 100,000 | 90,000 |
Retained Earnings | 57,605 | 38,744 |
Total Common Equity | $157,605 | $128,774 |
Total Liabilities and Equity | $311,824 | $252,670 |
Sales for 2019 were $455,150,000, and EBITDA was 35% of sales. Furthermore, depreciation and amortization were 11% of net fixed assets, interest was $8,575,000, the corporate tax rate was 40% and DMH pays 40% of its net income as dividends.
- Calculate free cash flow for 2019.
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