This year, FCF Inc. has earnings before interest and taxes of $10 comma 400 comma 000, depreciation expenses of $1 comma 000

Question

3 years ago

12

This year, FCF Inc. has earnings before interest and taxes of $10 comma 400 comma 000, depreciation expenses of $1 comma 000

comma 000, capital expenditures of $1 comma 900 comma 000, and has increased its net working capital by $ 575 comma 000. If its tax rate is 30 %, what is its free cash flow?

Business

1 answer:

krek1111 [17] · Answer 1 · 2022-04-07T20:26:47+03:00

Answer:

Free cash flow is $8,925,000

Explanation:

Free cash flow is the net cash cashflow available for the shareholders or for the reinvestment after paying all capital expenditure.

Free Cash flow

Earning Before Interest and Tax $10,400,000

Add: Depreciation expenses $1,000,000

Less: Capital expenditures $1,900,000

Less: Increase in net working capital <u>$575,000 </u>

Free cashflow $8,925,000

This​ year, FCF Inc. has earnings before interest and taxes of ​$10 comma 400 comma 000​, depreciation expenses of ​$1 comma 000

This year, FCF Inc. has earnings before interest and taxes of $10 comma 400 comma 000, depreciation expenses of $1 comma 000