Computing the free cash flow

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A firm has earnings before interest and taxes (EBIT) of $55 million, depreciation of $9 million, and a 40% tax rate. Its net fixed assets increase by $13 million. It spends $16 million to increase its current assets. It expects its accounts payable to increase by $3 million, its accruals to increase by $5 million, and its notes payable to increase by $4 million. The firm's current liabilities consist of only accounts payable, accruals, and notes payable. What is its free cash flow (FCF)?

Reference no: EM132652104

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