Question: A firm has the following information for the previous year: Net income = $400; Net operating profit after taxes (NOPAT) = $500; Total assets = $2,000; and Total operating capital = $1700. The information for the current year is: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,300; and Total operating capital = $2100. What is the free cash flow for the current year?© BrainMass Inc. brainmass.com March 4, 2021, 7:45 pm ad1c9bdddf
This solution is comprised of a neat, step by step response illustrating the computations required to derive the free cash flow value. This response also provides the appropriate conclusion which can be drawn from the calculated value.