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The 2015 income statement for Egyptian Noise Blasters shows that depreciation ex

ID: 2818170 • Letter: T

Question

The 2015 income statement for Egyptian Noise Blasters shows that depreciation expense is $96 million, NOPAT is $287 million. At the end of the year, the balance of gross fixed assets was $730 million. The change in net operating working capital during the year was $86 million. Egyptian’s free cash flow for the year was $260 million.

Calculate the beginning-of-year balance for gross fixed assets

The 2015 income statement for Egyptian Noise Blasters shows that depreciation expense is $96 million, NOPAT is $287 million. At the end of the year, the balance of gross fixed assets was $730 million. The change in net operating working capital during the year was $86 million. Egyptian’s free cash flow for the year was $260 million.

Calculate the beginning-of-year balance for gross fixed assets

Explanation / Answer

Beginning-of-year balance for gross fixed assets = At the end -of-year balance for gross fixed assets+Depreciation expense for the year = $        730 Million + $          96 Million = $        826 Million