From the following information on the income statement and the balance sheet, what is free cash flow to the firm (FCFF) in 2019? Assume that the tax rate is 0.3. Income Statement Items 2018 2019 Revenue 2,542 3,004 Cost of goods sold 1,017 1,235 SG&A expense 308 353 Depreciation 409 505 Interest expense 108 155 Balance Sheet Items 2018 2019 Cash 151 308 Accounts receivable 456 903 Inventory 905 1,207 PP&E 9,087 12,843 Accumulated Dep 4,241 5,739 Accounts payable 605 656 Short-term debt 304 505 Long-term debt 3,044 3,448 Common stock 1,800 1,800 Retained earnings x x
From the following information on the income statement and the balance sheet, what is free cash flow to the firm (FCFF) in 2019? Assume that the tax rate is 0.3. Income Statement Items 2018 2019 Revenue 2,542 3,004 Cost of goods sold 1,017 1,235 SG&A expense 308 353 Depreciation 409 505 Interest expense 108 155 Balance Sheet Items 2018 2019 Cash 151 308 Accounts receivable 456 903 Inventory 905 1,207 PP&E 9,087 12,843 Accumulated Dep 4,241 5,739 Accounts payable 605 656 Short-term debt 304 505 Long-term debt 3,044 3,448 Common stock 1,800 1,800 Retained earnings x x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
From the following information on the income statement and the
Assume that the tax rate is 0.3.
Income Statement
Items |
2018 |
2019 |
Revenue |
2,542 |
3,004 |
Cost of goods sold |
1,017 |
1,235 |
SG&A expense |
308 |
353 |
|
409 |
505 |
Interest expense |
108 |
155 |
Balance Sheet
Items |
2018 |
2019 |
Cash |
151 |
308 |
|
456 |
903 |
Inventory |
905 |
1,207 |
PP&E |
9,087 |
12,843 |
Accumulated Dep |
4,241 |
5,739 |
Accounts payable |
605 |
656 |
Short-term debt |
304 |
505 |
Long-term debt |
3,044 |
3,448 |
Common stock |
1,800 |
1,800 |
|
x |
x |
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