Group Exercise3 - Interest and Taxes 12,000 Net Fixed...

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Group Discussion Exercise3 1. Use the following financial statement information from Krusty Burger Co. to calculate the company’s 2007 free cash flow. Assume the company’s tax rate is 30%. Krusty Burger Co. Krusty Burger Co. Balance Sheet 2007 Income Statement Year 2007 2006 Sales $20,00 0 Assets Cost of Goods Sold 5,000 Current Assets 4,000 3,500 Operating Expenses 2,000 Gross Fixed Assets 11,000 10,000 Depreciation Expense 1,000 Less: Accumulated Depreciation 1,200 200 Earnings Before
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Unformatted text preview: Interest and Taxes 12,000 Net Fixed Assets 9,800 9,800 Interest Expense 1,200 Total Assets $13,800 $13,300 Earnings Before Taxes 10,800 Liabilities & Equity Taxes 3,240 Accounts Payable & Accruals 600 500 Earnings After Taxes $7,560 Short-term Debt 100 500 Current Liabilities 700 1,000 Long-term Debt 4,300 9,900 Common Stock 1,000 1,000 Retained Earnings 7,800 1,400 Total Equity 8,800 2,400 Total Liabilities & Equity $13,800 $13,300...
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Group Exercise3 - Interest and Taxes 12,000 Net Fixed...

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