Reference no: EM133091137
Question - In 2010, Retail Stuff Inc. had sales of $400 million. Operating costs, depreciation and interest were $200 million, $30 million and $25 million respectively. Its corporate tax rate is 30%. The company reported $45 million in operating current assets and $20 million in operating current liabilities. It also reported net property, plant and equipment of $80 million. For 2009, net operating working capital was $35 million and total net operating capital was $90 million.
Required - With respect to 2010:
(a) What was the company's net income?
(b) What was the company's NOPAT?
(c) What was the company's Free Cash Flow from Operations?
(d) What was the gross investment in property, plant and equipment during the year?
(e) What was the company's Free Cash Flow to Equity for the year?
(f) Define Free Cash Flow to the Firm and identify one possible use for Free Cash Flow to the Firm.