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Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that...

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Finance

Calculate free cash flow for 2017 for Monarch Textiles, Inc.,based on the financial information that follows. Assume that allcurrent liabilities are non-interest-bearing liabilities and thatno fixed assets were sold or disposed of during 2017.(Enter your answer in 1000s.)

Monarch Textiles, Inc. ($ thousands)
Income statementSelected balance sheet items
201720162017
Sales1,610Current assets470655
Cost of sales870Net fixed assets168336
Operating expenses185Current liabilities285365
Depreciation84
Interest expense50
Earnings before taxes421.00
Tax168.40
Net income252.60

What is the free cash flow?

Answer & Explanation Solved by verified expert
4.3 Ratings (863 Votes)
EBIT EBT Interest Expense EBIT 42100 5000 EBIT 47100 Tax Rate Tax EBT Tax Rate 16840 42100 Tax Rate 40 Working Capital 2017 Current Assets 2017 Current    See Answer
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Transcribed Image Text

Calculate free cash flow for 2017 for Monarch Textiles, Inc.,based on the financial information that follows. Assume that allcurrent liabilities are non-interest-bearing liabilities and thatno fixed assets were sold or disposed of during 2017.(Enter your answer in 1000s.)Monarch Textiles, Inc. ($ thousands)Income statementSelected balance sheet items201720162017Sales1,610Current assets470655Cost of sales870Net fixed assets168336Operating expenses185Current liabilities285365Depreciation84Interest expense50Earnings before taxes421.00Tax168.40Net income252.60What is the free cash flow?

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