Answer to Question #133000 in Economics of Enterprise for M Booth

Question

Reported free cash flow of 43.1 million and investment in operating capital of 26.1 million. Company incurred 14.0 million in depreciation expense and paid 29.7 million in taxes on EBIT. what is the EBIT ?

Answer 1

$\text{EBIT = TR- cogs -OE- depreciation}$ EBIT =((43.1 +26.1)-14 -29.7)m

EBIT=25.5m