Assets Liabilities Last Current Year Year Last Current Year Year Current Assets

Question

Assets Liabilities Last Current Year Year Last Current Year Year Current Assets Current Liabilities Cash Accounts Receivable Inventory $213 $281 Accounts Payable $385 $445 201 201 $586 $646 457 461 Notes Payable 665 554 Total Total $1,335 $1,296 Long-Term Debt $2,998 $3,015 Fixed Assets PP&E; $5,124 $6,454 Total Liabilities $3,584 $3.661 $909 $1,300 Net PP&E; $4,215 $5.154 Oner's Equity $1,966 $2,789 Total Assets $5,550 $6,450 Liab. and Equity $5,550 $6,450 Corporation A Income Statement Current Year Corporation A Current Year Income Statement (in SMillions) Sales Cost of Goods Sold Depreciation Earnings Before Intestad taxes $2,877 1,012 365 $1,500 Earnings Before Taxes Taxes Net Income $1,500 520 $980 Retained Earnings $880 Dividends $100 Use the financial statements for Corporation A. What is the free cash flow to the firm, in millions?

Explanation / Answer

free cash flow

=net income+depreciation+changes in working capital-capital investment

=980+365+(457-461+665-554+445-385)-(6454-5124)

=182 million

The above should be the answer..

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