Use the financial statements below to calculate the firm’s Free Cash Flow according to the method used FCF calculation on the Discussion Board.
Use the method from postings to calculate FCF and post your calculation. Provide the numbers for this calculation: CF = OCF - NWC - NCS. Ultimately, there are about 7 calculations, but you can provide just a summary of the calculations for this formula: FCF = OCF - NWC - NCS.
Real Time Corporation
Balance Sheet as of December 31, 2016 and 2015 (000 omitted)
2015 2016 2015 2016
Cash $500 $500 Accounts Payable $ 350 $ 400
Accounts Receivable 460 600 Other CL 644 726
Inventory 1,180 1,246 Total CL 994 1,126
Total CA 2,140 2,346 Long-term debt 2,869 2,956
Net Fixed Assets 5,770 6,087 Total Liabilities 3,863 4,082
Other Assets 1,000 1,000 Equity:
Total Assets 8,910 9,433 Common Stock 1,000 1,000
Addl. Paid in Surplus 2,200 2,200
Retained Earnings 1,847 2,151
Total Equity 5,047 5,351
Total Liab & St. Equity 8,910 9,433
Real Time Corporation
2016 Income Statement (000 omitted)
Sales $3,990
Cost of Goods Sold 2,137
Depreciation 1,018
EBIT 835
Interest Expense 267
Taxable Income 568
Taxes (34%) 193
Net Income 375
Dividends $ 225
Addition to Ret. Earnings 150
nehneh1
instructions_for_free_cash_flow.docx
0
