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Jonathon Rolfson

Feb 20, 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 operating income of $2.90 million, depreciation of $1.20 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totaled $0.6 million. How much was its free cash flow, in millions?
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Bernhard White

Feb 20, 2025

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... Show More
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Bernhard White

Feb 20, 2025

answer; i believe the correct answer is radioactive decay);... Show More
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