Calculate the net cash flow to invested capital

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Question - For the question, assume the following facts:

  • Net Income = $800,000
  • Depreciation = $350,000
  • Interest expense = $100,000
  • Capital expenditures = $250,000
  • Increase in accounts receivable = $100,000
  • Increase in accounts payable = $25,000
  • Increase in L-T debt = $200,000
  • Tax rate = 40%

a. Calculate EBITDA: ___________________

b. Calculate EBIT: _________________________

c. Calculate Net income (after tax): _____________________

d. Calculate net cash flow to equity: __________________________

e. Calculate net cash flow to invested capital: _________________________

Reference no: EM131698917

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