\"What was Bailey\'s Free Cash Flow for 2012?\" Bailey Corporation\'s financial
ID: 2696247 • Letter: #
Question
"What was Bailey's Free Cash Flow for 2012?"
Bailey Corporation's financial statements (dollars and shares are in millions) are provided here.
Balance Sheets as of December 31 2012 2011 Assets Cash and equivalents $ 15,000 $ 14,000 Accounts receivable 35,000 30,000 Inventories 31,210 28,000 Total current assets $ 81,210 $ 72,000 Net plant and equipment 53,000 49,000 Total assets $134,210 $121,000 Liabilities and Equity Accounts payable $ 10,500 $ 9,000 Notes payable 7,000 5,300 Accruals 7,800 7,000 Total current liabilities $ 25,300 $ 21,300 Long-term bonds 20,000 20,000 Total debt $ 45,300 $ 41,300 Common stock (5,000 shares) 60,000 60,000 Retained earnings 28,910 19,700 Common equity $ 88,910 $ 79,700 Total assets $134,210 $121,000Explanation / Answer
FCF A measure of financial performance calculated as operating cash flow minus capital expenditures Here the operating cash flows for the year 2012 = $23250 there is no additional capital expenditure(Dividends are not capital expenditures. They are neither cash outflows or inflows) So FCF for year 2012 = $23,250
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