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From the following information on the income statement and the balance sheet, what is free cash flow to the equity (FCFE) in 2019? Assume that
From the following information on the income statement and the balance sheet, what is free cash flow to the equity (FCFE) in 2019?
Assume that the tax rate is 0.3.
Income Statement
Items | 2018 | 2019 |
Revenue | 2,531 | 3,059 |
Cost of goods sold | 1,083 | 1,200 |
SG&A expense | 308 | 352 |
Depreciation | 410 | 508 |
Interest expense | 101 | 158 |
Balance Sheet
Items | 2018 | 2019 |
Cash | 151 | 309 |
Accounts receivable | 459 | 905 |
Inventory | 907 | 1,208 |
PP&E | 9,000 | 12,003 |
Accumulated Dep | 4,223 | 5,762 |
Accounts payable | 606 | 653 |
Short-term debt | 302 | 506 |
Long-term debt | 3,038 | 3,422 |
Common stock | 1,800 | 1,800 |
Retained earnings | x | x |
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