The following information has been extracted from the financial statements of a company. Use it...

90.2K

Verified Solution

Question

Finance

The following information has been extracted from the financial statements of a company. Use it to answer the 4 questions that follow it. When answering the questions (filling in the blanks), DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign in front of first digit for negative numbers. Round to the nearest dollar.

Earnings before interests and taxes: EBIT in 2020 = 400
Tax rate: T = 20%
Accumulated depreciation in balance sheet of 2019 = 50
Accumulated depreciation in balance sheet of 2020 = 70
Net Fixed Assets in 2019 = 1,200
Net Fixed Assets in 2020 = 1,600
Other Long-Term assets in 2019 = 0
Other Long-Term assets in 2020 = 0
Net operating working capital (NOWC) in 2019 = 20
Current assets in balance sheet of 2020 = 30
Current liabilities in balance sheet of 2020 = 20

1. What is the Net Cash Flow (NFC) for 2020?

2. What is the Investment in Gross Fixed Assets for 2020?

3. What is the investment in net operating working capital (Investment NOWC) for 2020?

4. What is the Free Cash Flow (FCF) for 2020?

HELP!

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students