Question

Raedebe Technology: Sales $70 million EBITDA $20 million Depreciation $ 7 million Amortization $ 0 The company's tax rate is 40%. The company does not expect any changes in its net operating working capital. This year the company's planned gross capital expenditures will total $12 million. What is the company's forecasted free cash flow for the year?

Answer 1

2.8 million,

Step-by-step explanation:

20 - 7 = 13 (EBIT)

EBIT (1- .4) + 7 - (12) = 2.8