From the following information on the income statement and the balance sheet, what is free cash flow to the firm (FCFF) in 2019? Assume that the tax rate is 0.3. Income Statement Items20182019Revenue2,5423,004Cost of goods sold1,0171,235SG&A expense308353Depreciation409505Interest expense108155 Balance Sheet Items20182019Cash151308Accounts receivable456903Inventory9051,207PP&E9,08712,843Accumulated Dep4,2415,739Accounts payable605656Short-term debt304505Long-term debt 3,0443,448Common stock1,8001,800Retained earningsxx

Free Cash Flow: Following the payment of operational costs and capital expenditures, free cash flow…

Answered: From the following information on the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 6EA: Use the following information from Birch Companys balance sheets to determine net cash flows from...

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From the following information on the income statement and the balance sheet, what is free cash flow to the firm (FCFF) in 2019?

Assume that the tax rate is 0.3.

Income Statement



Items	2018	2019
Revenue	2,542	3,004
Cost of goods sold	1,017	1,235
SG&A expense	308	353
Depreciation	409	505
Interest expense	108	155

Balance Sheet



Items	2018	2019
Cash	151	308
Accounts receivable	456	903
Inventory	905	1,207
PP&E	9,087	12,843
Accumulated Dep	4,241	5,739
Accounts payable	605	656
Short-term debt	304	505
Long-term debt	3,044	3,448
Common stock	1,800	1,800
Retained earnings	x	x

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