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Last year firm had revenue of $20million, cost of goods sold (COGS) of $12 million, selling , general and administration cost (SG&A)of $2million, Account Receivables(AR)of $6 million, Account payable (AP) of $4 million and inventory of $4 million. What will be the free cash flow next/this year if you boost revenue 6% and AR 12%,while holding COGS growth to 3% and everything else remains the same as last year? Assume no taxes and no new capital expenditure.

Accounting Basics, Accounting

  • Category:- Accounting Basics
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