Find company net income

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Reference no: EM132731672

In 2010, Retail Stuff Inc. had sales of $300 million. Operating costs, depreciation and interest were $170 million, $30 million and $22 million respectively.

It's corporate tax rate is 40%. The company reported $60 million in operating current assets and $20 million in operating current liabilities. It also reported net property, plant and equipment of $100 million.

For 2009, net operating working capital was $25 million and total net operating capital was $65 million.

Required:

With respect to 2010:

(a) What was the company's net income?

(b) What was the company's NOPAT?

(c) What was the company's Free Cash Flow from Operations?

(d) What was the gross investment in property, plant and equipment during the year?

(e) What was the company's Free Cash Flow to the Firm for the year?

(f) When is negative free cash flow "bad" for the business? Explain. (No marks without an adequate explanation.)

Reference no: EM132731672

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