Provo, Inc., had revenues of $10 million, cash operating expenses of $5 million, and depreciation and amortization of $1 million during 2020. The firm purchased $500,000 of equipment during the year while increasing its inventory by $300,000 (with no corresponding increase in current liabilities). The marginal tax rate for Provo is 40 percent. TOOL: Revenue - Operating Ex EBITDA - D&A EBIT - Taxes NOPAT + D&A CF Opns - Capital Expenditures + Add WC = FCF
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USE INFORMATION FOR QUESTION 35 and 36.
Provo, Inc., had revenues of $10 million, cash operating expenses of $5 million, and
depreciation and amortization of $1 million during 2020. The firm purchased $500,000 of equipment during the year while increasing its inventory by $300,000 (with no corresponding increase in current liabilities). The marginal tax rate for Provo is 40 percent.TOOL:
Revenue
- Operating Ex
EBITDA
- D&A
EBIT
- Taxes
NOPAT + D&A
CF Opns
- Capital Expenditures
+ Add WC
= FCF
-
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