Fixed assets and net operating working capital

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Reference no: EM131016033

Smith Corporation’s income statement for the year 2012 is given below: Sales $17,000,000 Operating costs excluding depreciation 9,000,000 EBITDA $ 8,000,000 Depreciation 1,000,000 EBIT $ 7,000,000 Interest 1,000,000 EBT $ 6,000,000 Taxes (30%) 1,800,000 Net income $ 4,200,000 Calculate Smith’s free cash flow for 2012 if it spent $1,800,000 on new fixed assets and net operating working capital increased by $600,000.

Reference no: EM131016033

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