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2) Youve obtained the following balance sheet information for 2015 & 2016 along with income statement information for 2016 Categor Crrent Assets 2015 S50 2016 $80 2016 $50 Categor Sales Cost of Goods Sold Interest Expense 420 60 $24 S5 Net Fixed Assets Accounts Payable Accrued Expenses Long-term Debt Owners Equity 250 30 25 150 95 40 250 150 Depreciation Tax Rate S6 30% a)Calculate the Operating Cash Flow for 2016 b)Calculate the Free Cash Flow for 2016 c)What is the free cash flow to creditors? What is the free cash flow to bondholders? d)If accounts payable increases, briefly explain in a sentence or two, how that would affect free cash flow for the company,

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Home nert Page Layout Formulas Data Review View dd-Ins Cut copy ▼ Format Painter Σ AutoSum ー E ゴWrap Text в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Clipboard Alignment Number Cells LK234 LK LM LN LO LP LQ LR LS LT LU LV 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 /4 く トト1 OCF CASH FLOW STAT N | FCF . ARM, MS,confidenceINDEX . CURRENCY . LOAN , CROSS OVER , HEDGING MONEY MARKET . GM HPR AM , TAX , GROWTH SUST, PREF AND DIV POLICY SALES COGS DEPRECIATION EBIT INTEREST EBT TAX NET INCOME 24 6 20 15 4.50 10.50 OPERATING CASH FLOW EBIT DEPRECIATION TAXES OCF 20.00 6.00 4.50 21.50 ADD LESS FCF OCF INCREASE IN CAPITAL EXPENDITURE INCREASE IN OPERATING WORKING CAPITAL FCF = 21.50-176-(-15)- -139.50 erences: EV46 25-01-2019Home nert Page Layout Formulas Data Review View dd-Ins Σ AutoSum 11.A. A.--- 9- ー E ゴText ずWrap Text General copy ▼ Format Painter B l U. -...Δ.-=-- Conditional Format Cell Formatting, as Table w styles. Paste Merge & Center. $ , % , , , Insert Delete Format Sort &Find & 2 ClearFe Select Edting ▼ ㆆ ▼ Clipboard LU268 LI Alignment Number Cells LK LM 1쎄 1(》 LP LQ I.S LT LU LV 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 FCF OCF - INCREASE IN CAPITAL EXPENDITURE INCREASE IN OPERATING WORKING CAPITAL FCF-21.50-176-(-15)- 139.50 NOTE INCREASE IN CAPITAL EXPENDITURE DIFFERENCE IN NET FIXED ASSETSDEPRECIATION INCREASE IN CAPITAL EXPENDITURE 420-250 +6- 176 NOTEINCREASE IN OPERATING WORKING CAPITAL CURRENT ASSETS- CURRENT LIABILITIES) OF 2016 (CURRENT ASSETS- CURRENT LIABILITIES) OF 20 INCREASE IN OPERATING WORKING CAPITAL (80-(60+40)-(50-(30+25))- 15 CASH FLOW TO CREDITORS (INTEREST PAID NET NEW BORROWINGS) (5 (250-150)) CASH FLOW TO BOND HOLDERS IS SAME AS CASHFLOW TO CREDITORS -95 FREE CASH FLOW CASH FLOW FROM ASSETS CASH FLOW TO CREDITORS +CASHFLOW TO STOKHOLDERS -139.5 95 CASH FLOW TO STOCK HOLDERS CASHFLOW TO STOCK HOLDERS -44.5 IF ACCOUNTS PAYABLE INCREASES, WORKING CAPITAL WILL DECREASE, SO FREE CASH FLOW WILL INCREASE OF CASH FLOW STATW FCFARM, MSI,confidence INDEX CURRENCY LOAN CROSS OVER HEDGING MONEY MARKET GM HPR AM TAX GROTH SUST PREF AND DIV POLICYD erences: EV46 25-01-2019

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