Cellular Access, Inc. is a cellular telephone service provider that reported net income of $250 million for the most recent fiscal year. The firm haddepreciation expenses of $100 million, capital expenditures of $200 million, and no interest expenses. Working capital increased by $10 million.Calculate the free cash flow for Cellular Access for the most recent fiscal year.The free cash flow is $million. (Round to the nearest integer.)

Net income = $250.0 millionDepreciation = $100 millionCapital expenditures = $200 millionIncrease in…

Answered: Cellular Access, Inc. is a cellular…

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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Cellular Access, Inc., a cellular telephone service provider reported net income of $242.6 million for the most recent fiscal year. The firm had depreciation expenses of $100.5 million, capital expenditures of $192.7 million, and no interest expenses. Net working capital increased by $9.3 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year. The free cash flow is $ million. (Round to one decimal place.)
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