Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the information provided in the table to calculate free cash flow for Corrections Corporation of America in Year 7. Income Statement & Balance Sheet

image text in transcribed

Use the information provided in the table to calculate free cash flow for Corrections Corporation of America in Year 7. Income Statement & Balance Sheet Corrections Corporation of America ($000's) Year 6 Year 7 Revenue 1,303,381 1,456,313 Cost of Goods Sold 947,946 1,036,087 SG&A 63,593 74,399 Depreciation 67,323 79,093 EBIT 224,519 266,734 Interest Expense, Net 59,505 53,468 Pre-Tax Income 165,014 213,266 Income Taxes 59,775 79,893 Net Income 105,239 133,373 ASSETS 2006 2007 Cash and Cash Equivalents 111,859 57,842 Accounts Receivable 267,557 282,821 Total Current Assets 379,416 340,663 1,805,052 2,086,219 Net Property & Equipment Goodwill & Intangibles 66,392 58,858 Total Assets 2,250,860 2,485,740 LIABILTIES & EQUITY Accounts Payable 164,092 214,441 Current Portion of Debt 290 290 Total Current Liabilities 164,382 214,731 Long-Term Debt 1,036,797 1,049,034 Total Liabilities 1,201,179 1,263,765 Common Stock 1,221 1,245 Stock Additional Paid-in-Capital 1,527,608 1,568,736 (479,148) (348,006) Retained Earnings (Deficit) Total Owners' Equity 1,049,681 1,221,975 Total Liabilities and Owners' Equity 2,250,860 2,485,740 Round your answer to the nearest whole number. Free cash flow = $1

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

The Complete Guide To Real Estate Finance For Investment Properties

Authors: Steve Berges

1st Edition

0471647128, 978-0471647126

More Books

Students also viewed these Finance questions

Question

Describe what happens if a ureter becomes obstructed.

Answered: 1 week ago