Please calculate the expected free cash flow (FCF) for year 2024 given the following information:
Income Statement | ||
2023 E | 2024 E | |
Sales | 11,388,031.20 | 14,804,440.56 |
COGS except depr. | 7,102,598.40 | 8,523,118.08 |
Other expenses | 714,603.51 | 778,917.83 |
Depreciation | 138,240.00 | 165,888.00 |
Total Expenses | 7,955,441.91 | 9,467,923.91 |
EBIT | 3,432,589.29 | 5,336,516.65 |
Int. expense | 987,681.86 | 967,651.27 |
EBT | 2,444,907.43 | 4,368,865.38 |
Taxes (21%) | 513,430.56 | 917,461.73 |
Net Income | 1,931,476.87 | 3,451,403.65 |
Balance Sheet: Asset | ||
2023 E | 2024 E | |
Cash | 24,336.00 | 31,636.80 |
S-T Investment | 80,216.06 | 96,259.28 |
Accounts Receivable (AR) | 1,448,636.00 | 2,028,090.40 |
Inventories | 1,529,383.68 | 1,376,445.31 |
Total CA | 3,082,571.74 | 3,532,431.79 |
Net FA | 1,202,003.19 | 1,298,163.45 |
Total Assets | 4,284,574.94 | 4,830,595.24 |
Balance Sheet: Liabilities & Equity | ||
2023 E | 2024 E | |
Accounts Payable (AP) | 419,904.00 | 503,884.80 |
Notes Payable (NP) | 1,460,160.00 | 1,898,208.00 |
Accruals | 402,135.55 | 482,562.66 |
Total CL | 2,282,199.55 | 2,884,655.46 |
Long-term debt | 1,382,776.92 | 1,286,741.77 |
Common Stock | 487,600.00 | 487,600.00 |
Retained Earnings | 131,998.46 | 171,598.00 |
Total Equity | 619,598.46 | 659,198.00 |
Total L&E | 4,284,574.94 | 4,830,595.24 |
Answer:
Free cash flows | ||
Cash flows from operating activities: | ||
Net income | $3,451,403.65 | |
Adjustments: | ||
Depreciation | $165,888 | |
Increase in short-term investments | ($16,043.22) | |
Increase in accounts receivable | ($579,454.4) | |
Decrease in inventories | $152,938.37 | |
Net cash flows from operating activities | $3,174,732.40 | |
(Less): Purchase of fixed assets | ($69,727.74) | |
Free cash flows | $3,105,004.66 |
Calculations:
Net fixed assets, 2023 | $1,202,003.19 |
Depreciation expense of 2024 | $165,888 |
Net fixed assets, 2024 | ($1,298,163.45) |
Purchase of fixed assets | $69,727.74 |
Get Answers For Free
Most questions answered within 1 hours.