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Sagot :
Answer: See explanation
Explanation:
Cruise's operating cash flow would be calculated as:
= EBIT + Depreciation + Taxes
= 203 + 74 - 50
= $227 million
Cruise's investment in operating capital will b calculated as:
= 71 - 11 - 6.1
= $53.9 million
Cruise's free cash flow for 2018 will be calculated as:
= operating cash flow - investment in Operating capital
= 227 - 53.9
= $173.1 million
Answer and Explanation:
The computation is shown below:
Operating cash flow = EBIT - taxes + depreciation expense
= $203 million -$50 million + $74 million
= $227 million
The investment in operating capital is
= Gross fixed asset - decrease in current asset + increase in current liability
= $71 million - $11 million + $6.1 million
= $66.1 million
And, the free cash flow is
= Operating cash flow - investment in operating capital
= $227 million - $66.1 million
= $160.90 million
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