Answer:
$156 million
Explanation:
The computation of the change in net working capital is shown below:
Free cash flow = EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure.
$180 million = $960 million × (1 - 40%) + $120 million - change in working capital - $360 million
$180 million = $576 million + $120 million - change in working capital - $360 million
$180 million = $336 million - change in working capital
So, the change in working capital would be
= $336 million - $180 million
= $156 million
The house is already sold to another person therefore it cannot be sold to another.
Answer:
Debit Credit
Loan Receivable $20,000,000
Cash $20,000,000
Interest Receivable $666,666
Interest Income $666,666
Explanation:
Interest is calculated by multiplying 0.08 by 20 million and then dividing it by 2 because the loan is a 6 month loan. As Aug- Dec is 5 months we will record revenue of 5/6 of the interest.
