Calculate free cash flow for 2021 for Monarch Textiles, Incorporated, based on the financial information that follows. Assume that allcurrent liabilities are non-interest-bearing liabilities and that no fixed assets were sold or disposed of during 2021.Income statementSalesCost of salesOperating expensesDepreciationInterest expenseEarnings before taxesFree cash flowMonarch Textiles, Incorporated ($ thousands)20211,700 Current assets820 Net fixed assets140 Current liabilities9050600240360TaxNet incomeNote: Round your answer to the 1000s place.Selected balance sheet items20205001803002021700360380

Free cash flow is calculated as shown below.

Income statement ales ost of sales perating expenses epreciation nterest expense arnings before taxes ax et income Monarch Textiles, Incorporated ($ thousands) 2021 1,700 Current assets 820 Net fixed assets 140 Current liabilities 90 50 600 240 360 e: Round your answer to the 1000s place. Selected balance sheet items 2020 500 180 300 2021 700 360 380

Income statement ales ost of sales perating expenses epreciation nterest expense arnings before taxes ax et income Monarch Textiles, Incorporated ($ thousands) 2021 1,700 Current assets 820 Net fixed assets 140 Current liabilities 90 50 600 240 360 e: Round your answer to the 1000s place. Selected balance sheet items 2020 500 180 300 2021 700 360 380

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 12P

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Calculate free cash flow for 2021 for Monarch Textiles, Incorporated, based on the financial information that follows. Assume that all current liabilities are non-interest-bearing liabilities and that no fixed assets were sold or disposed of during 2021. Monarch Textiles, Incorporated ($ thousands) Income statement Selected balance sheet items 2021 2020 2021 Sales 1,340 Current assets 380 520 Cost of sales 748 Net fixed assets 132 264 Operating expenses 116 Current liabilities 240 320 Depreciation 66 Interest expense 50 Earnings before taxes 360 Tax 144 Net income 216 Note: Round your answer to the 1000s place.
Calculate free cash flow for 2021 for Monarch Textiles, Incorporated, based on the financial information that follows. Assume that all current liabilities are non-interest-bearing liabilities and that no fixed assets were sold or disposed of during 2021. Monarch Textiles, Incorporated ($ thousands) Income statement Selected balance sheet items 2021 2020 2021 Sales 1,160 Current assets Cost of sales 712 Net fixed assets Operating expenses 104 Current liabilities Depreciation 54 Interest expense 50 Earnings before taxes 240 Tax 96 Net income 144 320 430 108 216 210 290 Note: Round your answer to the 1000s place. Answer is complete but not entirely correct. Free cash flow $ 44,000 ×
↓ The following table shows the projected free cash flows of an acquisition target. The potential acquirer wants to estimate its maximum acquisition price at an 8 percent discount rate and a terminal value in year 5 based on the perpetual growth equation with a 4 percent perpetual growth rate. Year Free cash flow 1 -950 2 3 -475 0 4 290 a. Estimate the target's maximum acquisition price. Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. > Answer is complete but not entirely correct. Maximum acquisition price $ 8,640 x 5 880 b. Estimate the target's maximum acquisition price when the discount rate is 7 percent and the perpetual growth rate is 5 percent. Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. X Answer is complete but not entirely correct. Maximum acquisition price $ 46,921 X
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Given the financial data for New Electronic World, Inc. (NEW), compute the following measures of cash flows for the NEW for the year ended December 31, 2021 Required: Compute for the operating cash flow Compute for the free cash flow
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