ABC Inc. had the following data for last year: Net income = $1000; Net operating profit after taxes (NOPAT) = $900; Total assets = $3,200; and Total operating capital = $2,200. Information for the just-completed year is as follows: Net income = $1,300; Net operating profit after taxes (NOPAT) = $1225; Total assets = $2,900; and Total operating capital = $2,800. How much free cash flow did the firm generate during the just-completed year? 5. ABC Inc. had the following data for last year: Net income = $1000; Net operating profit after taxes (NOPAT) = $900; Total assets =$3,200; and Total operating capital = $2,200. Information for the just-completed year is as follows: Net income = $1,300; Net operatingprofit after taxes (NOPAT) = $1225; Total assets = $2,900; and Total operating capital = $2,800. How much free cash flow did the firmgenerate during the just-completed year?

Formula for Free Cash Flow=NOPAT - Net Investment in Working Capital Working Note#1 Calculation…

Answered: 5. ABC Inc. had the following data for…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter2: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

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ABC Inc. had the following data for last year: Net income = $1000; Net operating profit after taxes (NOPAT) = $900; Total assets = $3,200; and Total operating capital = $2,200. Information for the just-completed year is as follows: Net income = $1,300; Net operating profit after taxes (NOPAT) = $1225; Total assets = $2,900; and Total operating capital = $2,800. How much free cash flow did the firm generate during the just-completed year?

5. ABC Inc. had the following data for last year: Net income = $1000; Net operating profit after taxes (NOPAT) = $900; Total assets =
$3,200; and Total operating capital = $2,200. Information for the just-completed year is as follows: Net income = $1,300; Net operating
profit after taxes (NOPAT) = $1225; Total assets = $2,900; and Total operating capital = $2,800. How much free cash flow did the firm
generate during the just-completed year?

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