Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Innovative Designs recently reported $230,000 of sales, $140,500 of operating costs other than depreciation, and $9,200 of depreciation. The company had $35,250 of outstanding bonds

image text in transcribed
Innovative Designs recently reported $230,000 of sales, $140,500 of operating costs other than depreciation, and $9,200 of depreciation. The company had $35,250 of outstanding bonds that carry a 6.75% Interest rate, and its tax rate was 35%. In order to sustain its operations, the firm spent $15,250 on new fixed assets (capital expenditures) and invested an additional $5,950 in net operating working capital. What was the firm's free cash flow (FCF)? Your answer should be between 38000 and 42000, rounded to even dollars (although decimal places are okay), with no special characters

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