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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
Following is the question and response. How do I set this answer up on a spreadsheet with calculations. Â I have other responses to add to the spreadsheet, but is I can get assistance setting up the spreadsheet I feel I can continue from that point. Â Mamie Smith
What is the free cash flow for 2014?Â
Â
Calculating of Free Cash Flow
           Free cash flow is the sum of the net operating profit after taxes (NOPAT).Â
FCF = NOPAT – Net investment in operating capital
NOPAT = EBIT (1-Tax rate)
NOPAT for 2012 = EBIT for 2012 (1- 0.40)
NOPAT = ($209,100) (0.60)
           NOPAT for 2012 = $125,460
Â
NOPAT for 2014 = EBIT for 2014 (1- 0.40)
                            = ($502,640) (0.60)
           NOPAT for 2014 = $301,584         Â
Net investment in operating capital for 2014 = NOPAT for 2014 – NOPAT for 2012
                                                    = ($301,584) – ($125,460)
Net investment in operating capital for 2014 =Â $ 176,124 Â Calculating for Free cash flow for 2014:
2014 Free cash flow (FCF) = NOPAT for 2014 – Net investment in operating capital                                                 for 2014
                                            = ($10,464) – (-$114,996)
2013 Free cash flow = - $104,532
FCF = NOPAT – Net investment in operating capital
Â
Â
Â
Calculating of Free Cash Flow
           Free cash flow is the sum of the net operating profit after taxes (NOPAT).Â
FCF = NOPAT – Net investment in operating capital
NOPAT = EBIT (1-Tax rate)
NOPAT for 2012 = EBIT for 2012 (1- 0.40)
NOPAT = ($209,100) (0.60)
           NOPAT for 2012 = $125,460
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