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You have forecast pro forma earnings of $1.199,000. This includes the effect of $215,000 in depreciation. You also forecast a
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Answer #1

Calculation of Free Cash Flows from Earnings:

Proforma Earnings $1,199,000

Add: Depreciation & Amortization $2,15,000

Less: Decrease in Working Capital -$92,000

-----------------

$1,322, 000

The free cash flows from earnings will be $ 1,322,000/-

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