Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose, You are financial manager of a firm, have to read below and report Free Cash Flow to the owner: Net Working Capital for 2

Suppose, You are financial manager of a firm, have to read below and report Free Cash Flow
to the owner:
Net Working Capital for 2021 is $7,752-$6,862=$890
Net Working Capital for 2022 is $10,083-$6,486=$3,597
Operating Cash Flows (OCF) are $14,155, Net Capital Spending (NCS) is $2,372
Based on these data, calculate and interpret Free Cash flow (FCF).
What does FCF says to your boss?
Now suppose you are asked to find how much can be collected if the amount of FCF will be
placed into deposit account which pays 6% for 3 years. What the amount will be received at
the end of the 3rd year without any additional contribution? Provide calculations.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Evolutionary Finance

Authors: Bartholomew Frederick Dowling

1st Edition

0230502199, 9780230502192

More Books

Students also viewed these Finance questions

Question

second chapter of Maths books is.,.?????????????????????????

Answered: 1 week ago

Question

What advantages does this tactic offer that other tactics do not?

Answered: 1 week ago

Question

What is the timeline for each tactic?

Answered: 1 week ago