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    Rattner Robotics New Income & Cash Flows

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    Rattner Robotics had 5 million in operating expenses. The company had net depreciation expenses of 1 million and interest expenses of 1 million, its corporate tax rate was 40%. The company has 14 million current assets and 4 million in non interest bearing current liabilities, it has 15 million in net plant and equipment. It estimates that is has an after tax cost capital of 10%.Assume that rattner's only non cash items was depreciation.

    A. What was the company's net income for the year?
    B. What was the company's net cash flow?
    C. What was the company's net operating cash flow?
    D. What was the company's operating cash flow?
    E. If operating capital in the previous year was 24 million what was the companys free cash flow for the year?
    F. What was the company's Economic Value Added?

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    Solution Summary

    Attached Excel file shows how to find net income, net cash flow, net operating cash flow, operating cash flow, economic value added and free cash flow for a robotics company.