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What is the free cash flow

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Reference no: EM133190157

Question - The following information has been extracted from the financial statements of a company. Use it to answer the 4 questions that follow it. When answering the questions (filling in the blanks), DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign in front of first digit for negative numbers. Round to the nearest dollar.

Net income in 2016 = $3,000

Annual depreciation in 2016 = $1,000

Net operating working capital in 2015 = $3,200

Net operating working capital in 2016 = $4,000

Gross fixed assets in 2015 = $80,000

Accumulated depreciation in 2016 = $10,000

Net fixed assets in 2016 = $80,000

There is no other long-term assets in the balance sheets of 2015 and 2016.

Required -

1. What is the Net Cash Flow for 2016?

2. What is the Net investment in Gross fixed assets for 2016?

3. What is the investment in net operating working capital (Investment NOWC) for 2016?

4. What is the Free Cash Flow (FCF) for 2016?

Reference no: EM133190157

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