Question
Use the following balance sheets and income statement to answer this question Tully Corp (all in $ Million) 2018 2019 LIABILITIES AND EQUITY 2018 2019
Use the following balance sheets and income statement to answer this question
Tully Corp (all in $ Million) | 2018 | 2019 | LIABILITIES AND EQUITY | 2018 | 2019 | |
Current assets: | Accounts payable | 540.0 | 398.1 | |||
Cash and cash equivalents | 1,148.1 | 1,188.6 | Accrued liabilities | 1,086.5 | 1,301.5 | |
Short-term investments | 902.6 | 848.4 | Deferred revenue | 449.3 | 510.2 | |
Accounts receivable, net | 386.5 | 485.9 | Long-term debt | 549.5 | 549.6 | |
Inventories | 965.8 | 1,241.5 | Other long-term financing liabilities | 347.8 | 345.3 | |
Prepaid expenses | 391.9 | 435.2 | Total liabilities | 2,973.1 | 3,104.7 | |
Total current assets | 3,794.9 | 4,199.6 | Common stock par value | 0.7 | 0.7 | |
Long-term investments securities | 479.3 | 575.9 | Additional paid-in capital | 40.5 | 40.5 | |
Property, plant and equipment, net | 2,355.0 | 2,658.9 | Retained earnings | 4,297.4 | 5,046.2 | |
Other operating assets | 731.2 | 784.8 | Other equity interests | 48.4 | 27.1 | |
TOTAL ASSETS | 7,360.4 | 8,219.2 | Total shareholders' equity | 4,387.0 | 5,114.5 | |
Non-controlling interests | 2.4 | 5.5 | ||||
Tully Corp (in $ Million) | 2018 | 2019 | Total equity | 4,387.3 | 5,114.5 | |
Total net revenue | 11,700.4 | 13,299.5 | TOTAL LIABILITIES AND EQUITY | 7,360.4 | 8,219.2 | |
Cost of sales | 4,915.5 | 5,813.3 | ||||
Store and operating expense | 3,987.7 | 4,348.0 | ||||
Depreciation expense | 523.3 | 550.3 | ||||
General administrative expense | 749.3 | 801.2 | ||||
Other operating income | 203.9 | 210.7 | ||||
Operating income | 1,728.5 | 1,997.4 | ||||
Interest income | 115.9 | 94.4 | ||||
Interest expense | -33.3 | -32.7 | ||||
Earnings before income tax | 1,811.1 | 2,059.1 | ||||
Income taxes | 563.1 | 674.4 | ||||
Net earnings | 1,248.0 | 1,384.7 | ||||
Total dividend payment | 419.1 | 635.9 | ||||
Shares outstanding | 748.3 | 754.4 |
Calculate the firms free-cash-flow (FCF) for Tully during 2019 and carefully interpret the meaning of free cash flow that you calculated to the firm's investors.
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