Sales COGS Depreciation Expense Interest Expense Tax rate 30% Net Income Current Asset Beginning Current Asset Ending Current Liability Beginning Current Liability Ending Purchase of PPE Interest Bearing Short Term Interst Bearing Long Term Cash and cash Equivalent beginning Cash and cash Equivalent ending Discount rate Requirement 1. EBIT 2. Change in Net Working Capital 3. Operating Cash Flow 4. Free Cash Flow to Firm 5. Free Cash Flow to Equity 2,000,000 1,200,000 200,000 50,000 165,000 385,000 1,000,000 2,000,000 800,000 1,650,000 100,000 400,000 100,000 200,000 200,000 10%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sales
COGS
Depreciation Expense
Interest Expense
Tax rate 30%
Net Income
Current Asset Beginning
Current Asset Ending
Current Liability Beginning
Current Liability Ending
Purchase of PPE
Interest Bearing Short Term
Interst Bearing Long Term
Cash and cash Equivalent beginning
Cash and cash Equivalent ending
Discount rate
Requirement
1. EBIT
2. Change in Net Working Capital
3. Operating Cash Flow
4. Free Cash Flow to Firm
5. Free Cash Flow to Equity
2,000,000
1,200,000
200,000
50,000
165,000
385,000
1,000,000
2,000,000
800,000
1,650,000
100,000
400,000
100,000
200,000
200,000
10%
Transcribed Image Text:Sales COGS Depreciation Expense Interest Expense Tax rate 30% Net Income Current Asset Beginning Current Asset Ending Current Liability Beginning Current Liability Ending Purchase of PPE Interest Bearing Short Term Interst Bearing Long Term Cash and cash Equivalent beginning Cash and cash Equivalent ending Discount rate Requirement 1. EBIT 2. Change in Net Working Capital 3. Operating Cash Flow 4. Free Cash Flow to Firm 5. Free Cash Flow to Equity 2,000,000 1,200,000 200,000 50,000 165,000 385,000 1,000,000 2,000,000 800,000 1,650,000 100,000 400,000 100,000 200,000 200,000 10%
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