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What is the company free cash flow

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Reference no: EM133132798

Question - A company has an EBIT of P30,000,000, depreciation of P5,000,000, and a 40% tax rate. It needs to spend P10,000,000 on new fixed assets and P15,000,000 to increase its current assets. It expects its accounts payable to increase by P2,000,000, its accruals to increase by P3,000,000, and its notes payable to increase by P8,000,000. The firm's current liabilities consist of only accounts payable, accruals, and notes payable. What is the company's free cash flow? Show the solution.

Reference no: EM133132798

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