Forecast KMS's free cash flow, assuming KMS's market share will increase by 0.28% 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 fr The f The fr The fr The fr The fr Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Free Cash Flow (000) Net Income After-Tax Interest Expense Depreciation. Increases in Net Working Capital Capital Expenditures 2019 $7,996 226.941671819 Print 5,409 0 5,059 2020 $9,226 227 5,484 2,926 5,059 Done 2021 $9,096 227 7,353 3,102 28,066 2022 2023 $9,494 $10,987 1,266 1,266 7,482 7,575 3,405 8,051 3,782 8,051 - X 2024 $12,680 1,266 7,517 4,011 8,051
Forecast KMS's free cash flow, assuming KMS's market share will increase by 0.28% 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 fr The f The fr The fr The fr The fr Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Free Cash Flow (000) Net Income After-Tax Interest Expense Depreciation. Increases in Net Working Capital Capital Expenditures 2019 $7,996 226.941671819 Print 5,409 0 5,059 2020 $9,226 227 5,484 2,926 5,059 Done 2021 $9,096 227 7,353 3,102 28,066 2022 2023 $9,494 $10,987 1,266 1,266 7,482 7,575 3,405 8,051 3,782 8,051 - X 2024 $12,680 1,266 7,517 4,011 8,051
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The free cash flow in 2019 will be thousand. (Round to the nearest integer.)
Part 2
The free cash flow in 2020 will be thousand. (Round to the nearest integer.)
Part 3
The free cash flow in 2021 will be thousand. (Round to the nearest integer.)
Part 4
The free cash flow in 2022 will be thousand. (Round to the nearest integer.)
Part 5
The free cash flow in 2023 will be thousand. (Round to the nearest integer.)
Part 6
The free cash flow in 2024 will be thousand. (Round to the nearest integer.)
Transcribed Image Text:Forecast KMS's free cash flow, assuming KMS's market share will increase by 0.28% 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 fr
The fr
The fr
The fr
The fr
The fr
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Free Cash Flow (000)
Net Income
After-Tax Interest Expense
Depreciation
Increases in Net Working Capital
Capital Expenditures
2019
$7,996
226.941671819
Print
5,409
0
5,059
2020
$9,226
227
5,484
2,926
5,059
...
Done
2022
2023
2021
$9,096 $9,494 $10,987
227
1,266
1,266
7,353
7,482
7,575
3,102
3,405
3,782
28,066
8,051
8,051
2024
$12,680
1,266
7,517
4,011
8,051
- X
Expert Solution
Step 1: Introduction:
Free cash flow is the money that is left over after a company pays its operating expenses and capital asset maintenance (FCF). Free cash flow is the money that remains after a company pays their operating expenses (OpEx) and capital expenditures (CapEx).
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education