Question
Environ Systems is a firm that specializes in cleaning environmental damage (waste disposal) and specialty chemicals. The income statement is reported below: Revenues $1,000 -
Environ Systems is a firm that specializes in cleaning environmental damage (waste disposal) and specialty chemicals. The income statement is reported below:
Revenues | $1,000 |
- Cost of goods sold | 550 |
- Depreciation | 150 |
Operating Profit (EBIT) | 300 |
- Interest expenses | 100 |
Taxable Income | 200 |
Taxes | 60 |
Net Income | $140 |
You are also provided with the following information:
-
The firm reported capital expenditures of $ 50 million in the most recent year and also made two acquisitions one for $125 million (using cash) and one for $75 million (using stock).
-
The working capital, inclusive of cash, increased from $80 million at the beginning of the year to $105 million at the end of the year; the firms cash balance decreased by $15 million during the year and it has no short term debt.
Estimate the free cashflow to the firm for the most recent year.
Your answer should be in millions (input 30 instead of 30,000,000).
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