Response to the following problem:
| Balance Sheets: |
|
2013 |
2012 |
| Cash and equivalents |
$100 |
$85 |
| Accounts receivable |
275 |
300 |
| Inventories |
375 |
250 |
| Total current assets |
$750 |
$635 |
| Net plant and equipment |
2,300 |
1,490 |
| Total assets |
$3,050 |
$2,125 |
|
|
|
| Accounts payable |
$150 |
$85 |
| Accruals |
75 |
50 |
| Notes payable |
150 |
75 |
| Total current liabilities |
$375 |
$210 |
| Long-term debt |
450 |
290 |
| Common stock |
1,225 |
1,225 |
| Retained earnings |
1,000 |
400 |
| Total liabilities and equity |
$3,050 |
$2,125 |
| Income Statements: |
|
2013 |
2012 |
| Sales |
$2,700 |
$1,500 |
| Operating costs excluding depreciation |
1,250 |
1,000 |
| EBITDA |
$1,450 |
$500 |
| Depreciation and amortization |
100 |
75 |
| EBIT |
$1,350 |
$425 |
| Interest |
62 |
45 |
| EBT |
$1,288 |
$380 |
| Taxes (40%) |
515 |
152 |
| Net income |
$773 |
$228 |
|
|
|
| Dividends paid |
$53 |
$48 |
| Addition to retained earnings |
$600 |
$180 |
|
|
|
| Shares outstanding |
100 |
100 |
| Price |
$25.00 |
$22.50 |
| WACC |
10.00% |
|
The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.
Using the financial statements given above, what is Rosnan's 2013 free cash flow (FCF)? Use a minus sign to indicate a negative FCF.