What was the company free cash flow for the year

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Problem - Last year Cole Furnaces had $4 million in operating income (EBIT). The company had a net depreciation expense of $1 million and an interest expense of $1 million; its combined federal and state corporate tax rate is 25%. The company has $14 million in operating current assets and $4 million in operating current liabilities; it has $15 million in net plant and equipment. It estimates that it has an after-tax cost of capital of 10%. Assume that Cole's only noncash item was depreciation.

Required -

a. What was the company's net income for the year?

b. What was the company's net cash flow?

c. What was the company's net operating profit after taxes (NOPAT)?

d. Calculate net operating working capital and total net operating capital for the current year.

e. If total net operating capital in the previous year was $24 million, what was the company's free cash flow (FCF) for the year?

f. What was the return on invested capital?

g. What was the company's Economic Value Added (EVA)?

Reference no: EM132735973

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