What is provita free cash flow

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Question 1: Provita Ltd had revenues of $1,900,000, cash operating expenses of $950,000, and depreciation and amortization of $190,000 during 2018. The firm purchased $95,000 of equipment during the year while increasing its inventory by $57,000 (with no corresponding increase in current liabilities). The marginal tax rate is 40 percent. What is Provita's Free Cash Flow (FCF) for 2018.

Select one:

Option a. $494,000

Option b. $760,000

Option c. $646,000

Option d. None of the options

Reference no: EM132578824

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