Acme, Inc., had revenues of $78 million, cash operating expenses of $21 million, and non-cash depreciation expense of $18 million during the year. Also during the same year, the firm purchased $15 million of additional equipment while also increasing its working capital investment by $13 million. Additionally, the firm had $6 million in interest expense. The tax rate for Acme is 25%. What is Acme's free cash flow for the year? Answer to the nearest $0.01 million

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.57TI: What is the total effect on the economy of a government tax rebate of $1,000 to each household in...
Question
Acme, Inc., had revenues of $78 million, cash operating expenses of $21 million,
and non-cash depreciation expense of $18 million during the year. Also during
the same year, the firm purchased $15 million of additional equipment while also
increasing its working capital investment by $13 million. Additionally, the firm had
$6 million in interest expense. The tax rate for Acme is 25%. What is Acme's free
cash flow for the year?
Answer to the nearest $0.01 million
Transcribed Image Text:Acme, Inc., had revenues of $78 million, cash operating expenses of $21 million, and non-cash depreciation expense of $18 million during the year. Also during the same year, the firm purchased $15 million of additional equipment while also increasing its working capital investment by $13 million. Additionally, the firm had $6 million in interest expense. The tax rate for Acme is 25%. What is Acme's free cash flow for the year? Answer to the nearest $0.01 million
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Intermediate Algebra
Intermediate Algebra
Algebra
ISBN:
9780998625720
Author:
Lynn Marecek
Publisher:
OpenStax College