You are a research analyst for Bedrock Capital Management and are considering investing inEvergreen Landscaping, a chain of franchised landscaping businesses located in the Midwest. Nosales of PP&E have taken place this year. You are trying to build some cash flow numbers for thecalculation of Discounted Cash Flow valuation. The tax rate is 35%. There are no sales of PP&E inthe current year. Using the table below, what is the Free Cash Flow to the Firm (FCFF)?Cash FlowFromOperatingNet Income NADeprec &AmortAccountsReceivable871AccountsPayable-3,337Inventory -1189PrepaidExpenses042ST Notes 6Cash FlowfromInvestingCapex -Purch ofPP&ECash FlowfromFinancingRevolving-899 CreditFacilityDividendsPaidLong TermDebtIncomeStatement-152 Revenue-803Cost of GoodsSold329 Gross ProfitSalaries &BenefitsRentDepreciation &AmortizationInterestExpense91,24877,06714,1812,9391,608871532

Free cash flow is the net earnings plus the depreciation as cashflow considers only cash dealt items…

You are a research analyst for Bedrock Capital Management and are considering investing in Evergreen Landscaping, a chain of franchised landscaping businesses located in the Midwest. No sales of PP&E have taken place this year. You are trying to build some cash flow numbers for the calculation of Discounted Cash Flow valuation. The tax rate is 35%. There are no sales of PP&E in the current year. Using the table below, what is the Free Cash Flow to the Firm (FCFF)?

You are a research analyst for Bedrock Capital Management and are considering investing in Evergreen Landscaping, a chain of franchised landscaping businesses located in the Midwest. No sales of PP&E have taken place this year. You are trying to build some cash flow numbers for the calculation of Discounted Cash Flow valuation. The tax rate is 35%. There are no sales of PP&E in the current year. Using the table below, what is the Free Cash Flow to the Firm (FCFF)?

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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