Given the information below, determine the free cash flow for 2014. Income Statement (In Thousands) 2014 2013 Sales $24,800.00 $22,000.00 $14,880.00 $13,200.00 $9,920.00 $8,800.00 -$920.00 -$800.00 $9,000.00 $8,000.00 -$112.00 -$160.00 Operating costs EBITDA Depreciation Earnings before interest and taxes Interest (8%) Earnings before taxes Taxes (40%) Net income Common dividends $8,888.00 $7,840.00 -$3,555.20 -$3,136.00 $5,332.80 $4,704.00 $2,082.00 $2,352.00

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
icon
Related questions
Topic Video
Question
Given the information below, determine the free cash flow for 2014.
Income Statement (In Thousands)
Sales
Operating costs
EBITDA
Depreciation
Earnings before interest and taxes
Interest (8%)
Earnings before taxes
Taxes (40%)
Net income
Common dividends
2014
2013
$24,800.00
$22,000.00
$14,880.00 $13,200.00
$9,920.00 $8,800.00
-$920.00
$800.00
$9,000.00 $8,000.00
-$112.00
-$160.00
$8,888.00 $7,840.00
-$3,555.20 -$3,136.00
$5,332.80 $4,704.00
$2,082.00 $2,352.00
Transcribed Image Text:Given the information below, determine the free cash flow for 2014. Income Statement (In Thousands) Sales Operating costs EBITDA Depreciation Earnings before interest and taxes Interest (8%) Earnings before taxes Taxes (40%) Net income Common dividends 2014 2013 $24,800.00 $22,000.00 $14,880.00 $13,200.00 $9,920.00 $8,800.00 -$920.00 $800.00 $9,000.00 $8,000.00 -$112.00 -$160.00 $8,888.00 $7,840.00 -$3,555.20 -$3,136.00 $5,332.80 $4,704.00 $2,082.00 $2,352.00
Balance Sheet (In Thousands)
Assets:
Cash and marketable securities
Accounts receivable
Inventories
Total current assets
Net fixed assets (PP&E)
Total assets
Liabilities and equity.
Accounts payable
Notes payable
Accruals
Total current liabilities
Long-term bonds
Total liabilities
Common stock (2 million shares)
Retained earnings
Total common equity
Total liabilities and equity
O $2,939
O $2,368
O $2,749
O $3.028
O $2,868
2014
2013
$1,200.00
$1,000.00
$5,565.00
$5,000.00
$7,440.00 $6,000.00
$14,205.00 $12,000.00
$9,200.00
$8,000.00
$23,405.00 $20,000.00
$6,500.00 $6,000.00
$400.00 $1,000.00
$3,254.20 $3,000.00
$10,154.20 $10,000.00
$1,000.00 $1,000.00
$11,154.20 $11,000.00
$6,000.00 $6,000.00
$6,250.80 $3,000.00
$12.250.80 $9,000.00
$23.405.00 $20.000.00
Transcribed Image Text:Balance Sheet (In Thousands) Assets: Cash and marketable securities Accounts receivable Inventories Total current assets Net fixed assets (PP&E) Total assets Liabilities and equity. Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Common stock (2 million shares) Retained earnings Total common equity Total liabilities and equity O $2,939 O $2,368 O $2,749 O $3.028 O $2,868 2014 2013 $1,200.00 $1,000.00 $5,565.00 $5,000.00 $7,440.00 $6,000.00 $14,205.00 $12,000.00 $9,200.00 $8,000.00 $23,405.00 $20,000.00 $6,500.00 $6,000.00 $400.00 $1,000.00 $3,254.20 $3,000.00 $10,154.20 $10,000.00 $1,000.00 $1,000.00 $11,154.20 $11,000.00 $6,000.00 $6,000.00 $6,250.80 $3,000.00 $12.250.80 $9,000.00 $23.405.00 $20.000.00
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education