Assume the company generated $3,400 in net operating profits after taxes. Using the information below, calculate the free cash flow for 2020. Balance Sheet as of December 31 (Millions of Dollars) 2020 2019 2020 2019 Assets Liabilities and Equity Cash $1,026 $900 Accounts payable $1,634 $1,436 Short-term Investments 90 100 Accruals 550 500 Accounts Receivable 1,968 Notes 1,726 645 575 payable Inventories 4,971 4,367 Total Current 2,829 2,511 Liabilities Total Current 8,055 7.093 Assets Long-term 2,173 2,815 debt Net plant and equipment 9.943 8.733 Total Liabilities 5,002 5.326 Total Assets $17,998 $15,826 Common 2.400 2,500 stock Retained earnings 10.595 8,000 Total common 12.995 10.500 equity Total liabilities and $17.998 $15,826 cquity O $1.423 O $1.739 O $1,467 O $1.534
Assume the company generated $3,400 in net operating profits after taxes. Using the information below, calculate the free cash flow for 2020. Balance Sheet as of December 31 (Millions of Dollars) 2020 2019 2020 2019 Assets Liabilities and Equity Cash $1,026 $900 Accounts payable $1,634 $1,436 Short-term Investments 90 100 Accruals 550 500 Accounts Receivable 1,968 Notes 1,726 645 575 payable Inventories 4,971 4,367 Total Current 2,829 2,511 Liabilities Total Current 8,055 7.093 Assets Long-term 2,173 2,815 debt Net plant and equipment 9.943 8.733 Total Liabilities 5,002 5.326 Total Assets $17,998 $15,826 Common 2.400 2,500 stock Retained earnings 10.595 8,000 Total common 12.995 10.500 equity Total liabilities and $17.998 $15,826 cquity O $1.423 O $1.739 O $1,467 O $1.534
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 21BEA: Swasey Company earned net income of 1,800,000 in 20X2. Swasey provided the following information:...
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