Problema firm has operating income of 1000 depreciation, Ask an Expert

Accounting

Problem:

A firm has operating income of $1,000, depreciation expense of $185 and its investment in operating capital is $400. The firm is 100% equity financed and has a 35% tax rate.

Required:

Question: What is the firm's free cash flow?

$785
$515
$435
$250

Note: Provide support for your underlying principle.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170105

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