Use the income statement shown next to calculate free cash flow for Rainier Printing for 2021. In addition to the information in the income statement, assume that Rainier had $580,000 in capital expenditures and $380,000 in working capital investments during 2021. Rainier Printing Income Statement January 1 to December 31, 2021 ($ thousands) Net sales Cost of sales Gross profit Operating expense Depreciation expense Operating income Interest expense Income before tax Tax Income after tax Note: Enter your answer in thousands. Free cash flow $ 8,600 5,800 2,800 1,080 530 1,190 960 $ 768
Use the income statement shown next to calculate free cash flow for Rainier Printing for 2021. In addition to the information in the income statement, assume that Rainier had $580,000 in capital expenditures and $380,000 in working capital investments during 2021. Rainier Printing Income Statement January 1 to December 31, 2021 ($ thousands) Net sales Cost of sales Gross profit Operating expense Depreciation expense Operating income Interest expense Income before tax Tax Income after tax Note: Enter your answer in thousands. Free cash flow $ 8,600 5,800 2,800 1,080 530 1,190 960 $ 768
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
Related questions
Question
Use the income statement shown next to calculate
Rainier Printing Income Statement | |
January 1 to December 31, 2021 ($ thousands) | |
Net sales | $ 8,600 |
---|---|
Cost of sales | 5,800 |
Gross profit | 2,800 |
Operating expense | 1,080 |
530 | |
Operating income | 1,190 |
Interest expense | 230 |
Income before tax | 960 |
Tax | 192 |
Income after tax | $ 768 |
Note: Enter your answer in thousands.

Transcribed Image Text:Use the income statement shown next to calculate free cash flow for Rainier Printing for 2021. In addition to the information in the
income statement, assume that Rainier had $580,000 in capital expenditures and $380,000 in working capital investments during
2021.
Rainier Printing Income Statement
January 1 to December 31, 2021 ($ thousands)
Net sales
Cost of sales
Gross profit
Operating expense
Depreciation expense
Operating income
Interest expense
Income before tax
Tax
Income after tax
Note: Enter your answer in thousands.
Free cash flow
$
8,600
5,800
2,800
1,080
530
1,190
960
$ 768
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you

Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,

Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education