Question - For the question, assume the following facts:

• Net Income = $800,000
• Depreciation = $350,000
• Interest expense = $100,000
• Capital expenditures = $250,000
• Increase in accounts receivable = $100,000
• Increase in accounts payable = $25,000
• Increase in L-T debt = $200,000
• Tax rate = 40%

a. Calculate EBITDA: ___________________

b. Calculate EBIT: _________________________

c. Calculate Net income (after tax): _____________________

d. Calculate net cash flow to equity: __________________________

e. Calculate net cash flow to invested capital: _________________________