Using the income statement above and the following information:
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2007.
Definitions:
Depreciation Method
A systematic approach used to allocate the cost of a tangible asset over its useful life.
Book Value
The net value of an asset as recorded on the balance sheet, calculated as the original cost minus accumulated depreciation or amortization.
Gain Or Loss
The financial result that occurs when the selling price of an asset differs from its purchase price, either positive (gain) or negative (loss).
Trade-In Allowance
The amount a seller allows a buyer for a fixed asset that is traded in for a similar asset.
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