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...

This preview shows page 1 - 2 out of 2 pages.

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
Image of page 1
Free Cash Flows for 1993 Earnings Before Interest Expenses & Taxes $77,500,000 Less Taxes $29,500,000
Image of page 2

You've reached the end of your free preview.

Want to read both pages?

  • Fall '19
  • Income Statement, Free cash flows, Generally Accepted Accounting Principles

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes