. You have forecast pro forma earnings of $1,000,000. This includes the effect of $200,000 in depreciation. You also forecast a decrease in working capital of $100,000 that year. What is your forecast of free cash flows for that year?
. You have forecast pro forma earnings of $1,000,000. This includes the effect of $200,000 in depreciation. You also forecast a decrease in working capital of $100,000 that year. What is your forecast of free cash flows for that year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![8. You have forecast pro forma earnings of $1,000,000. This includes the effect of $200,000 in
depreciation. You also forecast a decrease in working capital of $100,000 that year. What is your
forecast of free cash flows for that year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cec86f7-dfda-4d55-8a8f-44aae6ff3a27%2Fcf15661a-24e2-4002-96b9-713c509bdc22%2Fgmpm54e_processed.png&w=3840&q=75)
Transcribed Image Text:8. You have forecast pro forma earnings of $1,000,000. This includes the effect of $200,000 in
depreciation. You also forecast a decrease in working capital of $100,000 that year. What is your
forecast of free cash flows for that year?
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