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The 2013 Income Statement and other selected financial information for Company A, as well as projected amounts for 2014, are shown below. There are no planned gains or losses on disposal of assets in 2014. Assume a tax rate of 35 percent. What is the projected Free Cash Flow (FCF) for 2014? Company A Revenues Operating Expenses Operating Income Interest Expense Pretax Income Tax Expense Net Income Depreciation and Amortization Capital Expenditure Working Capital at Year End 2013 2014 2,000 2,200 1,400 1,540 600 660 100 100 500 560 175 196 325 364 100 100 100 120 200 220

The 2013 Income Statement and other selected financial information for Company A, as well as projected amounts for 2014, are shown below. There are no planned gains or losses on disposal of assets in 2014. Assume a tax rate of 35 percent. What is the projected Free Cash Flow (FCF) for 2014? Company A Revenues Operating Expenses Operating Income Interest Expense Pretax Income Tax Expense Net Income Depreciation and Amortization Capital Expenditure Working Capital at Year End 2013 2014 2,000 2,200 1,400 1,540 600 660 100 100 500 560 175 196 325 364 100 100 100 120 200 220

FINANCIAL ACCOUNTING
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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The 2013 Income Statement and other selected financial information for Company A, as well as projected amounts for 2014, are shown below. There are no planned gains or losses on disposal of assets in 2014. Assume a tax rate of 35 percent. What is the projected Free Cash Flow (FCF) for 2014? Company A Revenues Operating Expenses Operating Income Interest Expense Pretax Income Tax Expense Net Income Depreciation and Amortization Capital Expenditure Working Capital at Year End 2013 2014 2,000 2,200 1,400 1,540 600 660 100 100 500 560 175 196 325 364 100 100 100 120 200 220 1)370 2)389 3)429 4)469 Explain your answer
Transcribed Image Text:The 2013 Income Statement and other selected financial information for Company A, as well as projected amounts for 2014, are shown below. There are no planned gains or losses on disposal of assets in 2014. Assume a tax rate of 35 percent. What is the projected Free Cash Flow (FCF) for 2014? Company A Revenues Operating Expenses Operating Income Interest Expense Pretax Income Tax Expense Net Income Depreciation and Amortization Capital Expenditure Working Capital at Year End 2013 2014 2,000 2,200 1,400 1,540 600 660 100 100 500 560 175 196 325 364 100 100 100 120 200 220 1)370 2)389 3)429 4)469 Explain your answer
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