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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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

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