Everglade Enterprises reported the following information for fiscal 2014 and 201
ID: 2724789 • Letter: E
Question
Everglade Enterprises reported the following information for fiscal 2014 and 2013.
December 31
2014
2013
Operating assets
$75,210
$62,320
Operating liabilities
50,678
38,947
Net cash flow from operations
18,907
16,054
Net operating profit after tax (NOPAT)
14,638
11,973
Discount factor
7.0%
6.7%
What are the company's free cash flows to the firm (FCFF) for 2014?
Select one:
A. $13,479
B. $14,638
C. $18,907
D. $15,797
E. None of the above
December 31
2014
2013
Operating assets
$75,210
$62,320
Operating liabilities
50,678
38,947
Net cash flow from operations
18,907
16,054
Net operating profit after tax (NOPAT)
14,638
11,973
Discount factor
7.0%
6.7%
Explanation / Answer
18,907 IS fcff based on the information given as
FCCF=Net cash flow from operations-CAPEX
As we do not have capex, then FCFF=Net cash flow from operations
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