Question
Randell Corporations income statement for the year 2012 is given below: Sales $16,000,000 Operating costs excluding depreciation 8,500,000 EBITDA $ 7,500,000 Depreciation 2,000,000 EBIT $
Randell Corporations income statement for the year 2012 is given below:
| Sales | $16,000,000 |
| Operating costs excluding depreciation | 8,500,000 |
| EBITDA | $ 7,500,000 |
| Depreciation | 2,000,000 |
| EBIT | $ 5,500,000 |
| Interest | 1,000,000 |
| EBT | $ 4,500,000 |
| Taxes (45%) | 2,025,000 |
| Net income | $ 2,475,000 |
Calculate Randells free cash flow for 2012 if it spent $2,100,000 on new fixed assets and net operating working capital increased by $200,000.
| a. | $1,275,000 | |
| b. | $3,125,000 | |
| c. | $2,175,000 | |
| d. | $2,725,000 | |
| e. | $5,200,000 |
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Banking And Finance Managing The Moral Dimension
Authors: James Lynch
1st Edition
1855731762, 978-1855731769
