The 2013 Income Statement and other selected financial information for Company A, as well as projected amounts for 2014, are shown below. There are no planned gains or losses on disposal of assets in 2014. Assume a tax rate of 35 percent. What is the projected Free Cash Flow (FCF) for 2014? Company A Revenues Operating Expenses Operating Income Interest Expense Pretax Income Tax Expense Net Income Depreciation and Amortization Capital Expenditure Working Capital at Year End 2013 2014 2,000 2,200 1,400 1,540 600 660 100 100 500 560 175 196 325 364 100 100 100 120 200 220

The 2013 Income Statement and other selected financial information for Company A, as well as projected amounts for 2014, are shown below. There are no planned gains or losses on disposal of assets in 2014. Assume a tax rate of 35 percent. What is the projected Free Cash Flow (FCF) for 2014? Company A Revenues Operating Expenses Operating Income Interest Expense Pretax Income Tax Expense Net Income Depreciation and Amortization Capital Expenditure Working Capital at Year End 2013 2014 2,000 2,200 1,400 1,540 600 660 100 100 500 560 175 196 325 364 100 100 100 120 200 220

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter4: Profitability Analysis

Section: Chapter Questions

Problem 23PC

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