The 2015 income statement for Duffys Pest Control shows that depreciation expense was $197 million, EBIT was

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The 2015 income statement for Duffy’s Pest Control shows that depreciation expense was $197 million, EBIT was $494 million, and the tax rate was 30 percent. At the beginning of the year, the balance of gross fixed assets was $1,562 million and net operating working capital was $417 million. At the end of the year gross fixed assets was $1,803 million. Duffy’s free cash flow for the year was $424 million. Calculate the end-of-year balance for net operating working capital.

Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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