Answer:
See below
Step-by-step explanation:
Computation of free cash flow for Monach textiles, 2017
EBIT = EBT + Interest expense EBIT
EBIT = $408 + $50
EBIT = $458
Tax rate = Tax / EBT
Tax rate = $163.20 / $408
Tax rate = 0.4 = 40%
Operating cash flow = EBIT × (1 - Tax rate) + Depreciation - Change in net working capital - Capital expenditure
= $458 × (1 - 0.4) + $82 - ($640 - $360) - ($460 - $280)
= $274.8 + $82 - $280 - $180
= $274.8 + $92 - $100
= $256.8