Question
Excerpts from Riker, Inc.s financial statements are presented below. What is the companys free cash flow for 2020 if its tax rate is 25%? All
Excerpts from Riker, Inc.s financial statements are presented below. What is the companys free cash flow for 2020 if its tax rate is 25%? All amounts are in millions of dollars. Do not round numbers in intermediate steps. Report your answer in millions of dollars to two decimal places.
2019 | 2020 | |
Revenues | 750.00 | 862.50 |
Operating expenses | 650.00 | 750.00 |
Depreciation | 20.00 | 22.50 |
Operating income | 80.00 | 90.00 |
Interest expense | 6.25 | 6.25 |
Taxable income | 73.75 | 83.75 |
Taxes | 18.50 | 21.00 |
Net income | 55.25 | 62.75 |
Other information: | ||
Marketable securities | 25.00 | 31.25 |
Net operating working capital | 187.50 | 200.00 |
Capital expenditures | 25.00 | 30.00 |
Long-term operating liabilities | 35.75 | 40.55 |
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