Question

T), of $14,200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,130 million, and net operating working capital (NOWC) is expected to increase by $35 million. How much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year? $12,105 million $16,295 million $288,976 million $12,035 million

Answer 1

$12,035 million

Step-by-step explanation:

net operating profit after taxes = $14,200 million

net capital expenditures = $2,130 million

net operating capital = $35 million

cash flow = after taxes - capital expenditure - capital

= 14200 - 2130 - 35

= $12035 millions

Therefore, $12035 millions free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year