Week 5 - Calculating Free Cash Flows.docx - Gavin Rampertaap MPSM 700 \u2013 Sports Business Finance Module 5 \u2013 Case 20 June 2020 Free Cash Flow

# Week 5 - Calculating Free Cash Flows.docx - Gavin...

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Gavin Rampertaap MPSM 700 – Sports Business & Finance Module 5 – Case 20 June 2020 Free Cash Flow Diebold Incorporated 1992 1993 Revenues \$544 Million \$620 Million (Less) Operating Expenses (\$465.1 Million) (\$528.5) Million (Less) Depreciation (\$12.5 Million) (\$14 Million) = Earnings Before Interest and Taxes \$66.4 Million \$77.5 Million (Less) Interest Expenses (\$0) (\$0) (Less) Taxes (\$25.3 Million) (\$29.5 Million) = Net Income \$41.1 Million \$48 Million Working Capital \$175.0 Million \$240 Million Capital Expenditures \$15,000,000 \$18,000,000 Working Capital In 1991 \$180,000,000 1) Estimate the free cash flows in 1992 and 1993. Free Cash Flows for 1992 Earnings Before Interest Expenses & Taxes \$66,400,000 Less Taxes \$25,300,000 \$41,100,000 Plus Depreciation \$12,500,00 \$53,600,000 Plus Net Working Capital \$5,000,00 \$58,600,000 Less Capital Expenditures \$15,000,000 Free Cash Flow \$43,600,000 Net Working Capital 1992 \$175,000,000 Less Net Working Capital 1991 \$180,000,000 Net Working Capital -\$5,000,000
Free Cash Flows for 1993 Earnings Before Interest Expenses & Taxes \$77,500,000 Less Taxes \$29,500,000