Intermediate Financial Management
14th Edition
ISBN: 9780357516782
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Carter Swimming Pools has $23 million in net operating profit after taxes (NOPAT) in the current year. Carter has $15 million in total net operating assets in the current year and had $14 million in the previous year. What is its free cash flow? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
Free Cash Flow (FCF)
Carter Swimming Pools has $24 million in net operating profit after taxes (NOPAT) in the current year. Carter has $16 million in total net operating assets in the current year and had $14 million in the previous year. What is its free cash flow? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
$
Use the following to determine FCF (Free Cash Flow) for the current year. Assume an effective tax rate of 25%:
Revenue
COGS (Cost of Goods Sold)
Gross Profit
Wages Expense
Rent and Other Occupancy Expense
Depreciation Expense
Operating Income
Current Assets
Accounts Receivable
Inventory
Total Current Assets
Gross Fixed Assets (at historical cost)
less: Accumulated Depreciation
Net Fixed Assets
Total Assets
Current Year
100,000
67,000
11,500
15,000
1,000
8,500
5,500
50,000
30,000
20,000
Prior Year
4,200
950
8,200
6,000
46,000
29,000
17,000
Current Liabilities
Accounts Payable
Wages Payable
Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234. Show a
decrease as a negative figure.
Type your answer...
4,500
900
Chapter 6 Solutions
Intermediate Financial Management
Ch. 6 - Prob. 1QCh. 6 - If a “typical” firm reports $20 million of...Ch. 6 - Prob. 3QCh. 6 - What is operating capital, and why is it...Ch. 6 - Explain the difference between NOPAT and net...Ch. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3P
Ch. 6 - Prob. 4PCh. 6 - Kendall Corners Inc. recently reported net income...Ch. 6 - In its most recent financial statements,...Ch. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Prob. 9PCh. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 18PCh. 6 - What effect did the expansion have on sales and...Ch. 6 - Prob. 2MCCh. 6 - Prob. 3MCCh. 6 - Prob. 4MCCh. 6 - What is Computron’s free cash flow (FCF)? What are...Ch. 6 - Calculate Computron’s return on invested capital...Ch. 6 - Cochran also has asked you to estimate Computrons...Ch. 6 - Prob. 8MC
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