19-1) Given the following financial statements for ACME Corporation, what is the

Question

19-1) Given the following financial statements for ACME Corporation, what is the company’s free cash flow for 2007?
Year Ended 12/31/07 12/31/07 12/31/06
Sales $1,200,000 Current Assets $50,000 $45,000
Cost of Goods Sol 750,000 Gross Fixed Assets 880,000 650,000
Operating Expenses 200,000 Less Acc. Dep. 450,000 350,000
Depreciation Expense 100,000 Fixed Assets 430,000 350,000
EBIT 150,000 Total Assets $480,000 $395,000
Interest Expense 50,000
EBT 100,000 Current Liabilities $35,000 $50,000
Taxes 40,000 Long-term Debt 330,000 270,000
Net Income $ 60,000 Common Stock 5,000 5,000
Retained Earnings 110,000 70,000
Total Liab & Equit $480,000 $395,000

a. $190,000
b. -$40,000
c. - $15,000
d. $0

Explanation / Answer

NO change 0 dollars

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