You are considering an investment in WEST Corporation and want to evaluate the firm's cash flow. From the income statement, you see that the WEST Corporation earned an EBIT of P62 million, paid taxes of P17 million, and its depreciation expense was P5 million. Fixed assets increased by P32 million from 20X4 to 20X5. The firm's current assets increased by P20 million and spontaneous current liabilities increased by P12 million. Calculate WEST Corporation's operating cash flow, investment in operating capital and free cash flow for 20X5.

You are considering an investment in WEST Corporation and want to evaluate the firm's cash flow. From the income statement, you see that the WEST Corporation earned an EBIT of P62 million, paid taxes of P17 million, and its depreciation expense was P5 million. Fixed assets increased by P32 million from 20X4 to 20X5. The firm's current assets increased by P20 million and spontaneous current liabilities increased by P12 million. Calculate WEST Corporation's operating cash flow, investment in operating capital and free cash flow for 20X5.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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