Fordson has the following financial information for FY 2023 (in thousands): Operating revenue Salary expense Depreciation expense All other operating expenses Tax expense (20% tax rate) Net Income Expected working capital increase of Capital expenditure What is free cash flow? O420 720 O 820 O 1120 O Cannot be calculated 4000 1000 400 1200 280 1120 300 400

Fordson has the following financial information for FY 2023 (in thousands): Operating revenue Salary expense Depreciation expense All other operating expenses Tax expense (20% tax rate) Net Income Expected working capital increase of Capital expenditure What is free cash flow? O420 720 O 820 O 1120 O Cannot be calculated 4000 1000 400 1200 280 1120 300 400

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 12P

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Question

Fordson has the following financial information for FY 2023 (in thousands):
Operating revenue
Salary expense
Depreciation expense
All other operating expenses
Tax expense (20% tax rate)
Net Income
Expected working capital increase of
Capital expenditure
What is free cash flow?
O 420
720
820
O 1120
O Cannot be calculated
4000
1000
400
1200
280
1120
300
400

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