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
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