ncome statement Current Period Previous Period Sales Revenue 450,000 400,000 Less Cost of sales 200,000 200,000 Gross Profit 250,000 200,000 Less expenses Salary Expenses 60,000 68,000 General Expense 40,000 48,000 Interest expense 8000 7000 Depreciation 20,000 15,000 128000 338,000 Profit before tax 122,000 62,000
- Based on the information Income Statement and
Balance Sheet of company ABC:
Income statement Current Period Previous Period
Sales Revenue 450,000 400,000
Less Cost of sales 200,000 200,000
Gross Profit 250,000 200,000
Less expenses
Salary Expenses 60,000 68,000
General Expense 40,000 48,000
Interest expense 8000 7000
128000 338,000
Profit before tax 122,000 62,000
Net profit 89,000 37,000
Balance Sheet Current Period Previous Period
Assets
Cash 50,000 20,000
Accounts Receivable 81,000 60,000
Inventory 20,000 43,000
Plant&Building(net) 160,000 176,000
Total Assets $311,000 $299,000
Liabilities
Trade creditors 44,000 51,000
Tax payable 35, 000 20,000
Interest-bearing loans 20,000 16,000
(current)
Interest bearing 80,000 55,000
(non-current)
Total Liability 179,000 142,000
Equity
Share capital 67,000 89,000
Retained Profits 46,000 43,000
General Reserve 19,000 25,000
Total Equity $132000 $157000
A.Calculate FCFF(
B.Cross-check your answer of FCFF by determining the cash distributed (collected) to capital providers
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