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
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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
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