A company had the following information: Net income before tax Tax expense Interest Depreciation 30,000 9,000 10,000 5,000 Change in Accounts Receivable Change in Inventory Change in Accounts Payable Acquisition of Equipment (3,000) 7,000 (3,000) 18,000 Required: Compute a. EBITDA b. Free Cash Flow (FCF)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Valuation

A company had the following information:
Change in Accounts Receivable
Change in Inventory
Change in Accounts Payable
Acquisition of Equipment
Net income before tax
30,000
9,000
10,000
5,000
(3,000)
7,000
(3,000)
18,000
Tax expense
Interest
Depreciation
Required: Compute
a. EBITDA
b. Free Cash Flow (FCF)
Transcribed Image Text:A company had the following information: Change in Accounts Receivable Change in Inventory Change in Accounts Payable Acquisition of Equipment Net income before tax 30,000 9,000 10,000 5,000 (3,000) 7,000 (3,000) 18,000 Tax expense Interest Depreciation Required: Compute a. EBITDA b. Free Cash Flow (FCF)
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