Environ Systems is a firm that specializes in cleaning environmental damage (waste disposal) and specialty chemicals. The income statement is reported below:
Revenues$1,000 - Cost of goods sold
550
- Depreciation150Operating Profit (EBIT) 300 - Interest expenses100Taxable Income
200 Taxes
60Net Income
$140
You are also provided with the following information:
- The firm reported capital expenditures of $ 50 million in the most recent year and also made two acquisitions - one for $125 million (using cash) and one for $75 million (using stock).
- The working capital, inclusive of cash, increased from $80 million at the beginning of the year to $105 million at the end of the year; the firm's cash balance decreased by $15 million during the year and it has no short term debt.
- Estimate the free cashflow to the firm for the most recent year.