For 2020, Electro Tech Inc. has reported earnings before interest and taxes (ebit) of $6.5 million; capital expenditures of $1.2 million; and depreciation of $0.7 million. Net working capital for 2020 is $1.0 million and for 2019 is $0.7 million. The tax rate for Electro Tech is 35%. Calculate Electro Tech's free cash flow. 18.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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For 2020, Electro Tech Inc. has reported earnings before interest and taxes (ebit) of $6.5 million;
capital expenditures of $1.2 million; and depreciation of $0.7 million. Net working capital for
2020 is $1.0 million and for 2019 is $0.7 million. The tax rate for Electro Tech is 35%. Calculate
Electro Tech's free cash flow.
18.
Transcribed Image Text:For 2020, Electro Tech Inc. has reported earnings before interest and taxes (ebit) of $6.5 million; capital expenditures of $1.2 million; and depreciation of $0.7 million. Net working capital for 2020 is $1.0 million and for 2019 is $0.7 million. The tax rate for Electro Tech is 35%. Calculate Electro Tech's free cash flow. 18.
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