Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The companys operating income for the year is $245.80 million, and its operating expenses include $22.35 million in stock-based compensation and $95.27 million in depreciation.

The companys operating income for the year is $245.80 million, and its operating expenses include $22.35 million in stock-based compensation and $95.27 million in depreciation. Its net operating capital at the end of the preceding year was $1,165.25 million. What is the companys free cash flow for the year if its tax rate is 25%? Assume other long-term liabilities are operating liabilities. Do not round numbers in intermediate steps. Report your final answer in millions of dollars and round to two decimal places.

Cash 159
Marketable securities 79.2
Accounts receivable 195
Inventories 225.9
Deferred income taxes 78
Prepaid expenses 90.3
Total current assets 827.4
Net plant and equipment 694.44
Intangible assets 242.76
Total assets 1,764.60
Liabilities and Equity
Accounts payable 126
Notes payable 294
Accruals 96.3
Total current liabilities 516.3
Long-term debt 324
Post-employment obligations 268.8
Deferred income taxes 96
Other long-term liabilities 144.9
Total liabilities 1,350.00
Common stock 330.6
Retained earnings 84
Total equity 414.6
Total liabilities and equity 1,764.60

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

Investment Analysis and Portfolio Management

Authors: Frank K. Reilly, Keith C. Brown

10th Edition

538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387

More Books

Students also viewed these Finance questions