1. If you initially have $5 million dollars in cash on January 1st, how much would you have in February 1st if you issue $1.2 million in long-term debt, buy property worth $500,000, and sell inventory for $750,000 in the month of January?
$6,450,000
$5,050,000
$4,050,000
$3,800,000
2. All data in this problem are for the Year 2020.
NOPAT = $650
Depreciation = $75
Capital expenditure = $80
Working capital increased by $60
What is the free cash flow to all capital in Year 2020?