What was the free cash flow in 2012 for Stone Cold Incorporated?

Question

Quizplus · Accepted Answer

FCF = OCF - chFA - (chCA - chA/P - chAccruals)where
OCF = EBIT - Taxes + Depreciation
OCF = $400 - $124.8 + $100 = $375.2
chFA = Change in Gross Fixed Assets = Change in Net Fixed Assets + Depreciation
chFA =($1,000 - $870)+ $100 = $230
chCA = Change in Current Assets
chCA =$1,000 - $810 = $190
chA/P = Change in A/P
chA/P = $60 - $40 - $20
chAccruals = Change in Accruals.
chAccruals = $110 - $130 = -$20
FCF = OCF - chFA - (chCA - chA/P - chAccruals)
FCF = $375.2 - $230 - ($190 -$20 --$20)
FCF = $375.2 - $230 - $190
FCF = -$44.8

What Was the Free Cash Flow in 2012 for Stone