Accounting You are considering an investment in Crew Cut, Inc. andwant to evaluate the firm's free cash flow. From the incomestatement, you see that Crew Cut earned an EBIT of $23.19million, paid taxes of $3.81 million, and its depreciationexpense was $7.81 million. Crew Cut's gross fixed assetsincreased by $10.19 million from 2007 to 2008. The firm'scurrent assets increased by $6.19 million and spontaneouscurrent liabilities increased by $3.81 million.What is Crew Cut's operating cash flow, investment inoperating capital, and free cash flow for 2008, respectivelyin 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.

Step 1:- Introduction to the Operating Cash FlowOperating cash flow is the net amount of cash inflow…

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 7P

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You are considering an investment in Fields and Struthers, Incorporated, and want to evaluate the firm's free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $62 million, had a tax rate of 21 percent, and its depreciation expense was $6 million. Fields and Struthers's gross fixed assets increased by $32 million from last year to this year. The firm's current assets increased by $24 million and spontaneous current liabilities increased by $14 million. Calculate Fields and Struthers's NOPAT. Note: Enter your answer in millions of dollars rounded to 2 decimal places. (i.e., Enter 5,500,000 as 5.50.) NOPAT million Calculate Fields and Struthers's operating cash flow. Note: Enter your answer in millions of dollars rounded to 2 decimal places. (i.e., Enter 5,500,000 as 5.50.) Operating cash flow million
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Can you please answer this financial accounting question?
You are considering an investment in Fields and Struthers, Inc., and want to evaluate the firm’s free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $84 million, had a tax rate of 21 percent, and its depreciation expense was $10 million. Fields and Struthers's NOPAT gross fixed assets increased by $50 million from 2020 and 2021. The firm’s current assets increased by $38 million and spontaneous current liabilities increased by $25 million. Calculate Fields and Struthers’s NOPAT operating cash flow for 2021. (Enter your answer in millions of dollars rounded to 2 decimal places.) Calculate Fields and Struthers’s NOPAT investment in operating capital for 2021. (Enter your answer in millions of dollars.) Calculate Fields and Struthers’s NOPAT free cash flow for 2021. (Enter your answer in millions of dollars rounded to 2 decimal places.)
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