Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For each of the following, choose whether free cash flow goes up, goes down, stays the same, or whether th e impact on free cash

image text in transcribed

For each of the following, choose whether free cash flow goes up, goes down, stays the same, or whether th e impact on free cash flow cannot be determined. You may assume the business is profitableand pays taxes on EBIT. No explanation necessary. Just select your answer from the dropdown menu provided a. (10 points) Sales increase. b. (10 points) Sales increase. COGS increase by the same amount c. (10 points) Sales increase. Inventories increase by the same amount. d. (10 points) Sales increase. COGS increase by half the amount of the sales increase. Inventoriesde crease by the same amount that COGS increased. e (10 points) CAPEX increases. f. (10 points) Sales increase. CAPEX increases. 9. (10 points) CAPEX increases. Depreciation increases by the same amount that CAPEX increases. h. (10 points) Accounts receivables increase. Accounts payable increase by the same amount For each of the following, choose whether free cash flow goes up, goes down, stays the same, or whether th e impact on free cash flow cannot be determined. You may assume the business is profitableand pays taxes on EBIT. No explanation necessary. Just select your answer from the dropdown menu provided a. (10 points) Sales increase. b. (10 points) Sales increase. COGS increase by the same amount c. (10 points) Sales increase. Inventories increase by the same amount. d. (10 points) Sales increase. COGS increase by half the amount of the sales increase. Inventoriesde crease by the same amount that COGS increased. e (10 points) CAPEX increases. f. (10 points) Sales increase. CAPEX increases. 9. (10 points) CAPEX increases. Depreciation increases by the same amount that CAPEX increases. h. (10 points) Accounts receivables increase. Accounts payable increase by the same amount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions