A Firm Has Sales of $50,000, EBIT of $10,000, Depreciation

question 92

Multiple Choice

A firm has sales of $50,000, EBIT of $10,000, depreciation of $4,000, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and a $1,000 increase in net operating working capital, what is the firm's free cash flow?

• A)$10,000
• B)$9,000
• C)$8,000
• D)$1,200

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The process of gathering information by direct or indirect observation or experience, without theoretical speculation.

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A mathematical procedure to determine if there is a significant difference between groups or conditions in a study.