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Unformatted text preview: FIN350 Chapter 3 Exercise (See the relevant Statements on page 3 & 4 ) Q1: Net cash from operations in year 2002 = ___________________________________ Q2: NOPAT = EBIT (1 – Tax rate) How much is NOPAT for year 2002? _______________ 2001? ___________ Q3: How much is NOWC at thee end of year 2002? ________ 2001? ___________ NOWC = Current assets - Non-interest bearing current liability Examples of Non-interest bearing current liability: account payable, unearned revenue. Example of interest bearing current liability: note payable Q4: Operating capital = NOWC + Net Fixed Assets How much is operating capital at the end of year 2002? ___________ 2001?_________ Q5: How much is Net capital investment (change in operating capital)? Q6: How much is free cash flow (FCF) for the firm in year 2002? _______________ = NOPAT – change in operating capital Q7: How much is depreciation & amortization year 2002? Q8: How much is operating cash flow (OCF) in 2002?...
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- Spring '07
- Depreciation, Generally Accepted Accounting Principles, bearing current liability