The financial statements for Nike, Inc., are provided in Appendix B at the end of the text.
Question:
The financial statements for Nike, Inc., are provided in Appendix B at the end of the text.
a. Determine the free cash flow for the most recent fiscal year. Assume that 90% of the additions to property, plant, and equipment were used to maintain productive capacity. Round to the nearest thousand dollars.
b. How might a lender use free cash flow to determine whether or not to give Nike, Inc., a loan?
c. Would you feel comfortable giving Nike a loan, based on the free cash flow calculated in (a)?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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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a Recent Fiscal Year End all numbers in thousands Cash flows from inv...View the full answer
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