What is the companys net operating profit after tax

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Question - Last year, DDD had L.L 10 million in operating income. The company had net depreciation expense of L.L 2 million, no amortization expense, and 30 % of its EBIT in interest expense. Its corporate tax rate was 30%. The company's total assets were L.L 68 million, net fixed assets were L.L 30 million, accounts payable were L.L 6 million, note payables were L.L 10 million, and accruals were L.L 3 million.

a. Evaluate the information above to determine whether DDD has a net income or a net loss.

b. What is the company's net operating profit after tax?

c. Was the company's net cash flow positive or negative?

d. Does the company have enough operating cash flow?

e. What is the company's free cash flow if the company's operating capital for the previous year was L.L 24 million?

Reference no: EM132536395

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