What was the company net income for the year

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Last year Cole Furnaces had $5 million in operating income (EBIT). The company had a net depreciation expense of $1 million and an interest expense of $1 million; its corporate tax rate was 40%. 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.

Problem 1: What was the company's net income for the year?

Problem 2: What was the company's net operating profit after taxes (NOPAT)?

Problem 3: Calculate net operating working capital and total net operating capital for the current year.

Problem 4: If total net operating capital in the previous year was $24 million, what was the company's free cash flow (FCF) for the year?

Problem 5: What was the company's Economic Value Added (EVA)?

Reference no: EM132904663

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