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You are considering an investment in Hayek Ltd. and want to evaluate the firm's free cash flow. From the income statement, you see that Hayek earned an EBIT of $19.45 million, paid taxes of $4.10 million, and its depreciation expense was $6.50 million. Hayek's gross fixed assets increased by $9.30 million from 2022 to 2023. The firm's current assets increased by $5.80 million and spontaneous current liabilities increased by $2.50 million. What is Hayek's operating cash flow, investment in operating capital, and free cash flow for 2023, respectively in millions? a. $25.95 million, $10.80 million, $15.15 million b. $21.85 million, $12.60 million, $9.25 million c. $19.45 million, $9.30 million, $10.15 million d. $25.95 million, $12.60 million, $13.35 million

You are considering an investment in Hayek Ltd. and want to evaluate the firm's free cash flow. From the income statement, you see that Hayek earned an EBIT of $19.45 million, paid taxes of $4.10 million, and its depreciation expense was $6.50 million. Hayek's gross fixed assets increased by $9.30 million from 2022 to 2023. The firm's current assets increased by $5.80 million and spontaneous current liabilities increased by $2.50 million. What is Hayek's operating cash flow, investment in operating capital, and free cash flow for 2023, respectively in millions? a. $25.95 million, $10.80 million, $15.15 million b. $21.85 million, $12.60 million, $9.25 million c. $19.45 million, $9.30 million, $10.15 million d. $25.95 million, $12.60 million, $13.35 million

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 12P
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You are considering an investment in Hayek Ltd. and want to evaluate the firm's free cash flow. From the income statement, you see that Hayek earned an EBIT of $19.45 million, paid taxes of $4.10 million, and its depreciation expense was $6.50 million. Hayek's gross fixed assets increased by $9.30 million from 2022 to 2023. The firm's current assets increased by $5.80 million and spontaneous current liabilities increased by $2.50 million. What is Hayek's operating cash flow, investment in operating capital, and free cash flow for 2023, respectively in millions? a. $25.95 million, $10.80 million, $15.15 million b. $21.85 million, $12.60 million, $9.25 million c. $19.45 million, $9.30 million, $10.15 million d. $25.95 million, $12.60 million, $13.35 million
Transcribed Image Text:You are considering an investment in Hayek Ltd. and want to evaluate the firm's free cash flow. From the income statement, you see that Hayek earned an EBIT of $19.45 million, paid taxes of $4.10 million, and its depreciation expense was $6.50 million. Hayek's gross fixed assets increased by $9.30 million from 2022 to 2023. The firm's current assets increased by $5.80 million and spontaneous current liabilities increased by $2.50 million. What is Hayek's operating cash flow, investment in operating capital, and free cash flow for 2023, respectively in millions? a. $25.95 million, $10.80 million, $15.15 million b. $21.85 million, $12.60 million, $9.25 million c. $19.45 million, $9.30 million, $10.15 million d. $25.95 million, $12.60 million, $13.35 million
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