During 2019, Bitsincoins Corporation had EBIT of $100,000, a change in net fixed assets of $400,000, an increase in net current assets of $100,000, an increase in spontaneous current liabilities of $400,000, a depreciation expense of $50,000, and a tax rate of 30%. Based on this information, what is Bitsincoin's free cash flow?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 12P
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During 2019, Bitsıncoins Corporation had EBIT of $100,000, a change in net fixed
assets of S400,000, an increase in net current assets of $100,000, an increase in
spontaneous current liabilities of $400,000, a depreciation expense of $50,000, and
a tax rate of 30%. Based on this information, what is Bitsincoin's free cash flow?
Transcribed Image Text:During 2019, Bitsıncoins Corporation had EBIT of $100,000, a change in net fixed assets of S400,000, an increase in net current assets of $100,000, an increase in spontaneous current liabilities of $400,000, a depreciation expense of $50,000, and a tax rate of 30%. Based on this information, what is Bitsincoin's free cash flow?
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