Determine the amount of additional funds needed

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1. A firm has a return on assets of 10.2 percent, a profit margin of 5.6 percent, and total assets of $500,000. What is the net income?

2. Cellular Access, Inc., a cellular telephone service provider reported net income of $ 250.7 million for the most recent fiscal year. The firm had depreciation expenses of $103.6 million, capital expenditures of $203.6 million, and no interest expenses. Net working capital increased by $9.2 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year.

3. To determine the amount of additional funds needed (AFN), you may subtract the expected increase in operating current liabilities and retained earnings, which represents a source of funds, from the the expected increases in assets.

Reference no: EM132068875

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