The income statement for Duffy's Pest Control shows that depreciation expense was $190 million, EBIT was $490 million, and the tax rate was 34 percent. At the beginning of the year, the balance of gross fixed assets was $1,560 million and net operating working capital was $410 million. At the end of the year, gross fixed assets was $1,800 million. Duffy's free cash flow for the year was $410 million. Calculate the end-of-year balance for net operating working capital. Note: Enter your answers in millions of dollars rounded to 1 decimal place. (i.e., Enter 5,500,000 as 5.5.)

The income statement for Duffy's Pest Control shows that depreciation expense was $190 million, EBIT was $490 million, and the tax rate was 34 percent. At the beginning of the year, the balance of gross fixed assets was $1,560 million and net operating working capital was $410 million. At the end of the year, gross fixed assets was $1,800 million. Duffy's free cash flow for the year was $410 million. Calculate the end-of-year balance for net operating working capital. Note: Enter your answers in millions of dollars rounded to 1 decimal place. (i.e., Enter 5,500,000 as 5.5.)

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter13: Statement Of Cash Flows

Section: Chapter Questions

Problem 13.6EX

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