Final answer:
Without the specific financial data from Lowell Inc's financial statements, we cannot calculate the exact Free Cash Flow for Year 1. However, the formula to calculate FCF is Net Income + Depreciation & Amortization - Change in Working Capital - CapEx, and using this with the provided data would yield the correct answer.
Step-by-step explanation:
To calculate the Free Cash Flow (FCF) for Year 1 for Lowell Inc, we need specific financial data such as net income, depreciation & amortization, change in working capital, and capital expenditures. Since the actual data from the attached sheet is not provided, I will demonstrate how to calculate FCF with general formulas:
- First, we take the net income figure from the income statement.
- Then, we add back any non-cash charges such as depreciation and amortization.
- Next, we adjust for changes in working capital (current assets minus current liabilities).
- Finally, we subtract any capital expenditures (CapEx) which represent the company's investment in physical assets.
The formula for FCF is essentially:
FCF = Net Income + Depreciation & Amortization - Change in Working Capital - CapEx
Without the specific data in the attachment, a precise number cannot be given for Lowell Inc's Year 1 FCF. However, once you apply the provided numbers in the above formula, you would be able to select the correct answer among the provided choices, which are A) 541, B) 517, C) 546, or D) 523. Be sure to employ the appropriate figures from Lowell Inc's financial statements to perform your calculation accurately.