Question

Cellular​ Access, Inc., a cellular telephone service provider reported net income of $ 253.8 million for the most recent fiscal year. The firm had depreciation expenses of $ 103.3 ​million, capital expenditures of $ 203.3 ​million, and no interest expenses. Net working capital increased by $ 10.6 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year. The free cash flow is ​$ nothing million.

Answer 1

$143.20 million

Step-by-step explanation:

The computation of the free cash flow is shown below:

= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure.

= $253.80 million + $103.3 million - $10.6 million - $203.3 million

= $143.20 million

All other information which is given is not relevant. Hence, ignored it