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Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159 Exercise 12
Free cash flow
The financial statements for Nike, Inc. , are provided in Appendix B at the end of the text.
a. Determine the free cash flow for the most recent fiscal year. Assume that 90% of the additions to property, plant, and equipment were used to maintain productive capacity. Round to the nearest thousand dollars.
b. How might a lender use free cash flow to determine whether or not to give Nike, Inc., a loan
c. Would you feel comfortable giving Nike a loan, based on the free cash flow calculated in (a)
The financial statements for Nike, Inc. , are provided in Appendix B at the end of the text.
a. Determine the free cash flow for the most recent fiscal year. Assume that 90% of the additions to property, plant, and equipment were used to maintain productive capacity. Round to the nearest thousand dollars.
b. How might a lender use free cash flow to determine whether or not to give Nike, Inc., a loan
c. Would you feel comfortable giving Nike a loan, based on the free cash flow calculated in (a)
Explanation
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a) The cash flow from operating activiti...
Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
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