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Randell Corporations income statement for the year 2012 is given below: Sales $15,500,000 Operating costs excluding depreciation 7,500,000 EBITDA $ 8,000,000 Depreciation 1,000,000 EBIT $
Randell Corporations income statement for the year 2012 is given below:
Sales | $15,500,000 |
Operating costs excluding depreciation | 7,500,000 |
EBITDA | $ 8,000,000 |
Depreciation | 1,000,000 |
EBIT | $ 7,000,000 |
Interest | 1,000,000 |
EBT | $ 6,000,000 |
Taxes (30%) | 1,800,000 |
Net income | $ 4,200,000 |
Calculate Randells free cash flow for 2012 if it spent $2,400,000 on new fixed assets and net operating working capital increased by $300,000.
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