Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko, 2013-2018
Pro Forma Assets & Liabilities for Ideko, 2013-2018

-Given the following data for a given period, compute the free cash flow to the firm. Net Income = $10 000
After-tax Interest Expense = $1 000
Depreciation = $1 000
Increase in NWC = $1 000
Capital Expenditures = $2 000
A)$9 000
B)$9 900
C)$9 700
D)$9 500

Question

Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko, 2013-2018
  Pro Forma Assets & Liabilities for Ideko, 2013-2018
 
-Given the following data for a given period, compute the free cash flow to the firm. Net Income = $10 000
After-tax Interest Expense = $1 000
Depreciation = $1 000
Increase in NWC = $1 000
Capital Expenditures = $2 000
A)$9 000 
B)$9 900 
C)$9 700 
D)$9 500

Quizplus · Accepted Answer

Free cash flow to the firm = Net income + Depreciation + After-tax interest expense - Increase in NWC - Capital expenditures= 10000 + 1000 + 1000 - 1000 - 2000= $9000

Use the Tables for the Question(s)below