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Calculation of CFA:
CFA= OCF- addition to NWC+change in fixed assets
CFA= 600-400+400= $600
CFA= $600
13) If the OCF for the year is $600, Additions to NWC were $400 and the...
3. Use the information below to find the firm's cash flows (OCF, NCS, change in NWC, FCF, CFC, CFS). The firm's plowback ratio is 60% and the average tax rate is 30%. 2015 2016 Sales $3,500 Cost of Goods Sold $1,800 Depreciation Expense $875 Interest Expense $425 Current Assets $2,000 $2,500 Total Fixed Assets $6,200 $7,300 Accumulated Depreciation $1,300 200 This can be determined from the information given Current Liabilities $1,300 $1,500 Long-term Debt $3,500 $3,700 Common Stock This can...
OCF=operating cash flow
NCS-net capital spending
NWC= net working capital
CFS=cash flow to shareholders
CFC=cash flow to creditors
FCF=free cash flow
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Question 11 and 13
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