Answer:
$28,000,000
Explanation:
EBIT = EBITDA - depreciation - amortization
= $500 - $ 80 - $ 40
= $380 million
Net Income = EBIT - Tax @40%
= $380 - $152
= $228 million
Cash Flow from operating Activities:
= Net Income - Increase in NWC (after reducing cash increase) + Back Depreciation + Back Amortization
= $228 - $50 + $ 80 + $ 40
= $298,000,000
Free cash Flow after Investing Activities:
= Cash Flow from operating Activities - Capital expenditure - Investment in another firm
= $298,000,000 - $120,000,000 - $150,000,000
= $28,000,000
An income statement is a report that shows how a company is performing facially over a set period of time. There are a few main accounts that should be found on an income statement to show accurate reporting. The main accounts are: sales revenue, cost of goods sold or gross revenue, total or specific general expenses, depreciation, interest and tax expenses.
Answer: Manufacture Inventory further and sell for $30,000
Explanation:
To make this decision we would have to calculate the benefit that could be acquired from manufacturing further.
Amount net benefit if manufactured further and sold for $30,000
= 30,000 - 12,000
= 18,000
There would be a net benefit of $18,000 of manufactured further.
If Marigold Corp. sold at the scrap value there would get $14,000.
We can see that Manufacturing further and selling for $30,000 is the better option as it brings more money. It should therefore be chosen.