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Question 1 1 pts Cranky Corp earned an Operating Income of $1027 mil in 2015. In 2015, the depreciation expense was $114 mil and Income tax expense of $55 mil. The increase in Net Operating Working Capital in 2015 was $2 mil and the increase in fixed assets was $541 mil. What was Crankys free cash flow in 2015 in millions of dollars? (dont add zeroes)

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Answer #1

Free Cash flow=Operating Cash flow -Capital Expenditure

Operating Cash flow =Net income +depreciation -Income Tax-Increase in Working Capital

Operating Cash flow=$1027+$114-$55-$2=$1084

Free Cash flow=$1084-$541=$543 Million

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