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(b) You have been furnished with extract of a recent statement of Comprehensive Income for Horizon limited. Sh.000 8,000 (4,300) Net Sales Cost of sales Depreciation Gross profit Selling and Administrative expenses Interest expense Income before tax 3,300 (930) 1,800ノ (540) Income after tax In the recent year, Horizon Limited spent Kenya shilling five hundred thousand on new capital investment It also increased current assets net of non-interest bearing current liabilities by three hundred thousand. 20 Required Calculate Horizons free cash flow for the recent financial year. [13 marks] Total: 25 marks
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Answer #1

cash from operaions

net income + depreciation-increase in working capital

1260+400-300

1360

free cash flow

income from operation-capital investment

1360-500

860
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