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Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
-Using the income statement above and the following information (in $000's): Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2009.
Consumption
The action of using up a resource or goods and services being used by consumers.
Saving
The portion of income not spent on current consumption but reserved for future use.
Total Income
The aggregate amount of income received by an individual or household from all sources before taxes or deductions.
Utility Function
A mathematical representation of how a consumer derives satisfaction or utility from consuming various amounts of goods or services.
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