Question
Last year Harrington Inc. had $6 million in operating income (EBIT). Its depreciation expense was $2 million and its interest expense was $1 million. Its
Last year Harrington Inc. had $6 million in operating income (EBIT). Its depreciation expense was $2 million and its interest expense was $1 million. Its corporate tax rate is 25%. Harrington had $15 million in operating current assets, $4 million in accounts payable, $2 million in accruals, and $1 million in notes payable at year's end. In addition, it had $14 million in net plant and equipment and no excess cash. The prior year, Harrington had $12 million in net plant and equipment and its net operating working capital requirement was $8 million. Given the information provide, what was Harrington's free cash flows (FCF) from the year that just ended? Enter your answer without using the $ sign and using the format 1,000,000 instead of 1 million. Round to the nearest $
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