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Sales Revenues $100 Cost of goods sold 31 Fixed costs 15 Selling, general, and administrative expenses 23 Depreciation 8 EBIT Taxes Net Operating Profits after
Sales Revenues | $100 | ||
Cost of goods sold | 31 | ||
Fixed costs | 15 | ||
Selling, general, and administrative expenses | 23 | ||
Depreciation | 8 | ||
EBIT | |||
Taxes | |||
Net Operating Profits after Taxes (NOPAT) | |||
*** Tax rate | 40% | ||
Dividends paid | $10 | ||
Partial Balance Sheet 12/31/2019 | |||
ASSETS | LIABILITIES | ||
Current Assets | Current Liabilities | ||
Cash | $4 | Accruals | $7 |
Accounts receivable | 6 | Accounts payable | 4 |
Inventories | 5 | Total current liabilities | |
Total current assets | Long-term debt | 20 | |
Total Liabilities | |||
Gross Fixed assets | 70 | OWNERS EQUITY | |
Accumulated depreciation | 10 | Retained earnings (1) | |
Net Fixed assets | Common stock | ||
Intangible assets | 0 | Total owner's equity | |
TOTAL ASSETS | TOTAL LIABILITIES & OWNERS EQUITY | ||
(1) These are cumulative retained earnings but textbook simply calls it retained earnings | |||
Partial Balance Sheet 12/31/2020 | |||
ASSETS | LIABILITIES | ||
Current Assets | Current Liabilities | ||
Cash | $3 | Accruals | $6 |
Accounts receivable | 3 | Accounts payable | 4 |
Inventories | 7 | Total current liabilities | |
Total current assets | Long-term debt | 15 | |
Gross Fixed assets | 101 | Total liabilities | 25 |
Accumulated depreciation | OWNERS EQUITY | ||
Net Fixed Assets | Retained earnings | ||
Intangible assets | 0 | Common stock | |
Total long-term assets | Total owner's equity | ||
TOTAL ASSETS | TOTAL LIABILITIES & OWNERS EQUITY |
The Free Cash Flow (FCF) for 2020 is _____________
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