Cincinnati Deco recently reported $204,500 of sales, $140,500 of operating costs other than depreciation, and $9,250 of depreciation. The company had $35,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 21%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $15,250 to buy new fixed assets and to invest $6,850 in net operating working capital. What was the firm's free cash flow? $26,663 $23,700 $30,403 $19.256 No correct answer
Cincinnati Deco recently reported $204,500 of sales, $140,500 of operating costs other than depreciation, and $9,250 of depreciation. The company had $35,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 21%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $15,250 to buy new fixed assets and to invest $6,850 in net operating working capital. What was the firm's free cash flow? $26,663 $23,700 $30,403 $19.256 No correct answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cincinnati Deco recently reported $204,500 of sales, $140,500 of operating costs other than
$26,663
$23,700
$30,403
$19.256
No correct answer
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