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scoundrel [369]
3 years ago
9

In 2014, GoPro spent \$27.5$27.5 million on capital expenditures, experienced an increase in net working capital (including cash

) equal to \$239$239 million, and realized \$18$18 million in depreciation. What is GoPro's unlevered free cash flow for 2014? *Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.
Business
1 answer:
o-na [289]3 years ago
5 0

Answer: -248.5

Explanation: The money a business has before paying its financial obligations is called unlevered cash flow. Example- Money in business left before interest payments and operating expenses is its unlevered cash flow.

It can be computed using following formula :-

UFCF = EBIT- TAXES+ DEPRICIATION - CAPITAL EXPENDITURE - INCREASE IN WORKING CAPITAL

putting the values into equation we have :-

UFCF = 18 - 27.5 - 239

          = -248.5

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Debenture bond helps large companies who are with good credit scores, and good cash flow, lots of assets. Thus, these companies are more likely to use debenture bond, which let them avoid tying up assets.

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1 year ago
Sunland manufactures competition stunt kites. In November, Jerry Box prepared the following production budget for the first quar
Anika [276]

Answer:

\left[\begin{array}{ccccc}&January&February&March&Quarter\\$sales&24500&37700&32500&94700\\$Desired ending&9425&8125&3462.5&3462.5\\$Total Needs&33925&45825&35962.5&115712.5\\$beginning&2770&9425&8125&2770\\$Production Requirement&31155&36400&27837.5&95392.5\\\end{array}\right]

Explanation:

We need to recalcualte the desired ending inventory

as currently they are calcualte at 20% and we want it at 25% we do cross multiplication

Jan: 7,540 / 20 x 25 = 9,425

We divide by 20 to get the value of a single percent f sales and then we multiply to 25 as it is our desired amount

Feb: 6,500 / 20 x  25  = 8,125

March:  2,770 / 20 x 25 = 3,462.5

Next we adjsut6 the beginning inventory for January as it is 2,770 instead of 4,900 and we can determiante the production budget need for the quarter

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