From the following information on the income statement and the balance sheet, what is free cash flow to the equity (FCFE) in 2019?Assume that the tax rate is 0.3.Income StatementItems20182019Revenue2,5313,059Cost of goods sold1,0831,200SG&A expense308352Depreciation410508Interest expense101158Balance SheetItems20182019Cash151309Accounts receivable459905Inventory9071,208PP&E9,00012,003Accumulated Dep4,2235,762Accounts payable606653Short-term debt302506Long-term debt3,0383,422Common stock1,8001,800Retained earningsxx

Free cash flow (FCF) to equity refers to the amount of income/profit generated during the period…

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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 equity (FCFE) in 2019?

Assume that the tax rate is 0.3.

Income Statement

Items	2018	2019
Revenue	2,531	3,059
Cost of goods sold	1,083	1,200
SG&A expense	308	352
Depreciation	410	508
Interest expense	101	158

Balance Sheet

Items	2018	2019
Cash	151	309
Accounts receivable	459	905
Inventory	907	1,208
PP&E	9,000	12,003
Accumulated Dep	4,223	5,762
Accounts payable	606	653
Short-term debt	302	506
Long-term debt	3,038	3,422
Common stock	1,800	1,800
Retained earnings	x	x

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