Answers
A- | |||
net operating working capital | total of operating assets- total of operating liabilities | (20+195+234)-(78+104) | 267 |
net operating working capital 2016 | total of operating assets- total of operating liabilities | (24+215+257)-(98+125) | 273 |
B- | |||
free cash flow | cash from operating activities-capital expenditure | 223.4-98 | 125.4 |
capital expenditure | 423-325 | 98 | |
cash from operation | |||
net income | 179.4 | ||
add depreciation | 42 | ||
changes in working capital | |||
increase in A/R | -20 | ||
increase in inventory | -23 | ||
increase in A/P | 20 | ||
increase in accruals | 21 | ||
increase in notes payable | 4 | ||
cash flow from operating activities | 223.4 | ||
c- | large increase in net income from 2015-2016 explains the large increase in 2016 dividend |
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