Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Using the following financial information calculate the Free Cash Flow in 2020 Year 2019 Year 2020 Revenue 3800 4500 Cost of sales -2000 -2200 Gross
Using the following financial information calculate the Free Cash Flow in 2020
| Year 2019 | Year 2020 | |
| Revenue | 3800 | 4500 |
| Cost of sales | -2000 | -2200 |
| Gross profit | 1800 | 2300 |
| Selling expenses | -175 | -200 |
| Admin expenses | -365 | -440 |
| Depreciation and Amortisation | -660 | -700 |
| Profit before Interest and Tax | 600 | 960 |
| Interest expense | -20 | -40 |
| Profit before Tax | 580 | 920 |
| Tax expense | -145 | -258 |
| Net Income/Profit After Tax | 435 | 662 |
| Capex | 400 | 500 |
| Operating working capital | 500 | 570 |
| Taxation rate | 25% | 28% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Personal Finance
Authors: E. Thomas Garman, Raymond E. Forgue
13th edition
1337099759, 978-1337516440, 1337516449, 978-1337099752
