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Unformatted text preview: Dividends for 1995 are $95. ABC incremented the level of its short term debt by $300 in 1995. ABC repurchased $200 of its outstanding shares in 1995. Incremental investment in trade capital in 1995 was $145. In 1995, inventory turnover was 4.0, the accounts receivable collection period was 40 days. The accounts receivable collection period is calculated using 365 days in a year. In addition, inventory turnover and the accounts receivable collection period use only the 1995 financial statements (i.e., not beginning of period balance sheet amounts). Required: Based on the information at hand, use the methodologies developed in class to find free cash flow using both the operational and the financial definitions for 1995. Solution...
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- Spring '03