Q8

7. A firm with $5.3 million EBIT, $0.5 million depreciation, a tax rate of .4, a capital expenditure of $1 million, and an increase in NOWC of $0.6 million will have a free cash flow of what amount for the year? Please answer in units of million dollars to the closest tenth of a million as in $x.x million without entering the dollar sign or the million word.

8. Calculate net income if sales are $158,278, operating cost $77,691, depreciation is $16,143, and the firm also borrowed $10,000 at 7% interest and has a tax rate of .35. Answer to the nearest cent as in xx.xx leaving out the dollar sign.