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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. 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. Mamie Smith
What is the free cash flow for 2014?
Calculating of Free Cash Flow
Free cash flow is the sum of the net operating profit after taxes (NOPAT).
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
NOPAT for 2014 = EBIT for 2014 (1- 0.40)
= ($502,640) (0.60)
NOPAT for 2014 = $301,584
Net investment in operating capital for 2014 = NOPAT for 2014 – NOPAT for 2012
= ($301,584) – ($125,460)
Net investment in operating capital for 2014 = $ 176,124 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
Calculating of Free Cash Flow
Free cash flow is the sum of the net operating profit after taxes (NOPAT).
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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