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 $90 million, had a tax rate of 21 percent, and its depreciation expense was $10 million. Fields and Struthers's gross fixed assets increased by $56 million from last year to this year. The firm's current assets increased by $44 million and spontaneous current liabilities increased by $36 million. Calculate Fields and Struthers's NOPAT.
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 $90 million, had a tax rate of 21 percent, and its depreciation expense was $10 million. Fields and Struthers's gross fixed assets increased by $56 million from last year to this year. The firm's current assets increased by $44 million and spontaneous current liabilities increased by $36 million. Calculate Fields and Struthers's NOPAT.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 7P
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Calculate field and struthers's NOPAT ? General accounting question please solve

Transcribed Image Text: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 $90 million, had
a tax rate of 21 percent, and its depreciation
expense was $10 million. Fields and
Struthers's gross fixed assets increased by
$56 million from last year to this year. The
firm's current assets increased by $44
million and spontaneous current liabilities
increased by $36 million.
Calculate Fields and Struthers's NOPAT.
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