Free Cash Flow You are considering an investment in Cruise,Inc.and want to evaluate the firm's free cash flow.From the income statement,you see that Cruise earned an EBIT of $202 million,paid taxes of $51 million,and its depreciation expense was $75 million.Cruise's gross fixed assets increased by $70 million from 2012 to 2013.The firm's current assets decreased by $10 million and spontaneous current liabilities increased by $6 million.What is Cruise's operating cash flow,investment in operating capital,and free cash flow for 2013,respectively,in millions?
A) $202, $70, $130
B) $226, $70, $156
C) $226, $54, $172
D) $226, $74, $152
Correct Answer:
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