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You are considering an investment in Fields and Struthers, Inc. and want to evaluate the firm’s...

You are considering an investment in Fields and Struthers, Inc. and want to evaluate the firm’s free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $60 million, had a tax rate of 34 percent, and its depreciation expense was $4 million. Fields and Struthers’ gross fixed assets increased by $30 million from 2017 to 2018. The firm’s current assets increased by $22 million and spontaneous current liabilities increased by $13 million.

Calculate Fields and Struthers’ operating cash flow for 2018

Operating cash flow

Calculate Fields and Struthers’ investment in operating capital for 2018.

Investment in operating capital
Calculate Fields and Struthers’ free cash flow for 2018.
Free cash flow
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Soluhon Ca Cal culo tiald Sa ond Stuthen n oPoating Co flouw operahng cosh flow - EeiT- Tax + Deppuciatien 4360 illon ( Jnvestm buting apite - Encreal in Fixed al Inceae in asuend Assets - TAcease in causant iabithes 30 22 13 39million (c) te Cash iau 443.60 м- 39

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