You are considering an investment in Crew Cut, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Crew Cut earned an EBIT of $23.19 million, paid taxes of $3.81 million, and its depreciation expense was $7.81 million. Crew Cut's gross fixed assets increased by $10.19 million from 2007 to 2008. The firm's current assets increased by $6.19 million and spontaneous current liabilities increased by $3.81 million. What is Crew Cut's operating cash flow, investment in operating capital, and free cash flow for 2008, respectively in millions? a. $23.19 million, $10.19 million, $13 million. b. $23.19 million, $11.62 million, $11.57 million. c. $27.19 million, $10.19 million, $17 million. d. $27.19 million, $12.57 million, $14.62 million.
You are considering an investment in Crew Cut, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Crew Cut earned an EBIT of $23.19 million, paid taxes of $3.81 million, and its depreciation expense was $7.81 million. Crew Cut's gross fixed assets increased by $10.19 million from 2007 to 2008. The firm's current assets increased by $6.19 million and spontaneous current liabilities increased by $3.81 million. What is Crew Cut's operating cash flow, investment in operating capital, and free cash flow for 2008, respectively in millions? a. $23.19 million, $10.19 million, $13 million. b. $23.19 million, $11.62 million, $11.57 million. c. $27.19 million, $10.19 million, $17 million. d. $27.19 million, $12.57 million, $14.62 million.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 7P
Related questions
Question
100%
Accounting
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT