Question
EBIT $8,450,000 Net income $5,000,000 Depreciation $700,000 Amortization $100,000 Interest expense $1,500,000 Income taxes $1,950,000 Capital expenditures $750,000 Increase in working capital $900,000 Net increase
| EBIT | $8,450,000 |
| Net income | $5,000,000 |
| Depreciation | $700,000 |
| Amortization | $100,000 |
| Interest expense | $1,500,000 |
| Income taxes | $1,950,000 |
| Capital expenditures | $750,000 |
| Increase in working capital | $900,000 |
| Net increase in long-term debt | $200,000 |
Assumed Tax Rate of 28.05%
26. How much is the computed net free cash flow to equity? a. $5.25 million b. $4.35 million c. $3.95 million d. $4.15 million
27. How much is the computed invested capital net free cash flow? a. $5.40 million b. $5.65 million c. $5.23 million d. $4.15 million
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
