Forecast KMS's free cash flow, assuming KMS's market share will increase by 0.21% per year, investment, financing, and depreciation will be adjusted accordingly, and working capital will be as given in the table The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The free cash flow in 2019 will be $ The free cash flow in 2020 will be $ The free cash flow in 2021 will be $ The free cash flow in 2022 will be $ The free cash flow in 2023 will be $ The free cash flow in 2024 will be $ thousand. (Round to the nearest integer.) thousand. (Round to the nearest integer.) thousand. (Round to the nearest integer.) thousand. (Round to the nearest integer.) thousand. (Round to the nearest integer.) thousand. (Round to the nearest integer.) (...)
Forecast KMS's free cash flow, assuming KMS's market share will increase by 0.21% per year, investment, financing, and depreciation will be adjusted accordingly, and working capital will be as given in the table The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The free cash flow in 2019 will be $ The free cash flow in 2020 will be $ The free cash flow in 2021 will be $ The free cash flow in 2022 will be $ The free cash flow in 2023 will be $ The free cash flow in 2024 will be $ thousand. (Round to the nearest integer.) thousand. (Round to the nearest integer.) thousand. (Round to the nearest integer.) thousand. (Round to the nearest integer.) thousand. (Round to the nearest integer.) thousand. (Round to the nearest integer.) (...)
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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The second image is the data table in the question (first image)
Transcribed Image Text:## Data Table Overview
This table presents the Free Cash Flow (000s) for the years 2019 to 2024, detailing various financial metrics. The information can be copied for further spreadsheet analysis.
### Financial Metrics:
- **Net Income:**
- 2019: $7,957
- 2020: $9,325
- 2021: $9,115
- 2022: $9,455
- 2023: $10,998
- 2024: $12,744
- **After-Tax Interest Expense:**
- 2019: $228.01
- 2020: $228
- 2021: $228
- 2022: $1,261
- 2023: $1,261
- 2024: $1,261
- **Depreciation:**
- 2019: $5,449
- 2020: $5,460
- 2021: $7,413
- 2022: $7,450
- 2023: $7,512
- 2024: $7,596
- **Increases in Net Working Capital:**
- 2019: $0
- 2020: $2,902
- 2021: $3,148
- 2022: $3,438
- 2023: $3,721
- 2024: $4,071
- **Capital Expenditures:**
- 2019: $5,024
- 2020: $5,024
- 2021: $28,059
- 2022: $8,071
- 2023: $8,071
- 2024: $8,071
These metrics collectively illustrate the financial performance and planning from 2019 to 2024.
![Forecast KMS's free cash flow, assuming KMS's market share will increase by 0.21% per year; investment, financing, and depreciation will be adjusted accordingly, and working capital will be as given in the table.
The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.
- The free cash flow in 2019 will be $[ ] thousand. (Round to the nearest integer.)
- The free cash flow in 2020 will be $[ ] thousand. (Round to the nearest integer.)
- The free cash flow in 2021 will be $[ ] thousand. (Round to the nearest integer.)
- The free cash flow in 2022 will be $[ ] thousand. (Round to the nearest integer.)
- The free cash flow in 2023 will be $[ ] thousand. (Round to the nearest integer.)
- The free cash flow in 2024 will be $[ ] thousand. (Round to the nearest integer.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F00cf11b4-9fb9-4bb4-9dd4-8775ed33f82e%2F5e93efe6-f6ad-4de5-b058-164c14208657%2Fozdo5y6h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Forecast KMS's free cash flow, assuming KMS's market share will increase by 0.21% per year; investment, financing, and depreciation will be adjusted accordingly, and working capital will be as given in the table.
The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.
- The free cash flow in 2019 will be $[ ] thousand. (Round to the nearest integer.)
- The free cash flow in 2020 will be $[ ] thousand. (Round to the nearest integer.)
- The free cash flow in 2021 will be $[ ] thousand. (Round to the nearest integer.)
- The free cash flow in 2022 will be $[ ] thousand. (Round to the nearest integer.)
- The free cash flow in 2023 will be $[ ] thousand. (Round to the nearest integer.)
- The free cash flow in 2024 will be $[ ] thousand. (Round to the nearest integer.)
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