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8 March, 14:24

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

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  1. 8 March, 16:25
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    Answer: $11.16 million.

    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.
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Home » Business » 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.
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