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Free Cash Flow Catering Corp. reported free cash flows for 2008 of $8.08 million and investment in operating capital of $2.08 million. Catering listed $1.08 million in depreciation expense and $2.08 million
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Free Cash Flow Catering Corp. reported free cash flows for 2008 of $8.08 million and investment in operating capital of $2.08 million. Catering listed $1.08 million in depreciation expense and $2.08 million in taxes on its 2008 income statement. What was Catering's 2008 EBIT

User Hekomobile
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1 Answer

3 votes

Answer: $11.16 million.

Step-by-step explanation:

Free Cash Flow Catering Corp Earnings Before Interest and Tax (EBIT) can be calculated by the following formula,

EBIT = Operating Cashflow + Taxes - Depreciation.

Operating Cashflow = Free Cashflow + Investment in Operating Capital

= 8.08 million + 2.08 million

= $10.16 million

EBIT = 10.16 million + 2.08 million - 1.08 million

EBIT = $11.16 million.

User Liangli
by
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