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A

Anonymous

Jan 01, 2025

Vasudevan Inc. recently reported operating income of $2.90 million, depreciation of $1.20 million, and had a tax rate of 40%. The

Vasudevan Inc. recently reported an operating income of $2.90 million and depreciation expenses of $1.20 million, with a corporate tax rate of 40%. The company's combined expenditures on fixed assets and net operating working capital amounted to $0.6 million. Based on this information, what is the firm's free cash flow, expressed in millions?

3 Answers

A
Anonymous

Dec 27, 2024

2.34 millionExplanation:Vasudevan incorporation reported an operating income of $2.90 millionThe depreciation is $1.20 million The tax rate is 40%= 40/100= 0.4The firm's expenditure on fixed assets and net operating working capital is $0.6 millionTherefore, the free cash flow can be calculated as follows Free cash flow= operating profit-tax+depreciation-expenditure= 2.90-(2.90×0.4)+1.20-0.6= 2.90-1.16+1.20-0.6= 2.34 Hence the free cash flow is 2.34 million
B
Bernhard Bins

Dec 08, 2024

answer; i believe the correct answer is radioactive decay);

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