### Company had no amortization charges also no non-operating

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Q. XYZ newly reported \$48,909 of sales, \$16,389of operating costs other than reduction, also \$5,402 of depreciation. Company had no amortization charges also no non- operating income. It had \$8,000 of bonds outstanding which carry the 10% interest rate. Compute the firm's taxable income, or earnings before taxes (EBT)?

XYZ's EBIT is= \$12 million. Depreciation expense is= \$0.5 million also interest expense is \$0.5 million. Corporate tax rate is= 30%. Company has 10 million in operating current assets also \$3 million operating present liabilities. It has= \$12 million in net plant also equipment. After-tax cost of capital (WACC) is 8%. Suppose that only non-cash item is reduction. Total net operating capital last year was= \$15 million.

i) Find out the company's free cash flow for the year?

ii) Donner United has total owner's equity of= \$18,800. Firm has present assets of= \$23,100, present liabilities of= \$12,200, also total assets of= \$36,400. Find out the value of long-term debt?

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