document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=85204>Question 85204</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Last year Rattner Robotics had $5 million in operating income (EBIT).  The company had net depreciation  expense of $1 million; its coporate tax rate was 40 percent.  The company has $14 million in current assets and $ 4 million in non-interest bearing current liabilities; it has $ 15 million in net plant and equipment.  It estimates that it has an after tax cost of capital of 10 percent.  Assume that Rattners only noncash item was depreciation.<BR>\n" );
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document.write( "A. What was the companys net income for the year?<BR>\n" );
document.write( "B. What was the companys net cash flow?<BR>\n" );
document.write( "C. What was the companys net operating profit after taxes(NOPAT)?<BR>\n" );
document.write( "D. What was the companys operating cash flow?<BR>\n" );
document.write( "E. If operating capital in the previous year was $24 million what was the companys free cash flow (fcf) for the year?<BR>\n" );
document.write( "F.What was the company's economic Value Added(EVA)?<BR>\n" );
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document.write( "I need help with this and wasnt quite sure which category to place it in.  Any help would be greatful. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #61681 by </B><A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><B>jim_thompson5910(35256)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=61681\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> I'm not sure how to do these type of problems, but here is a solution from <a  rel=nofollow HREF=http://answers.yahoo.com/question/index?qid=20070413221130AAXtcXm> Yahoo Answers</a>\r<BR>\n" );
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document.write( "Originally posted by <a  rel=nofollow HREF=http://answers.yahoo.com/my/profile;_ylt=AveYimOqWlkSLNHOw_vGpRiXxQt.?show=e14ab5e258b448fc37f5f5afda946387aa> Dawn</a>\r<BR>\n" );
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document.write( "\"I'm tempted to solve these for you, but I think you must do your homework for you to learn. I'll just give you these formulas to help you:\r<BR>\n" );
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document.write( "1. Net income = EBIT - (taxes + interest expense)\r<BR>\n" );
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document.write( "2. Cash Flow After Tax = Net income + Depreciation + amortization + non-cash charges\r<BR>\n" );
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document.write( "3. NOPAT = EBIT x (1 - Tax Rate)\r<BR>\n" );
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document.write( "4. Operating Cash Flow = EBIT + depreciation - taxes\r<BR>\n" );
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document.write( "5. Free cash flow = net income + amortization + depreciation - changes in working capital - capital expenses\r<BR>\n" );
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document.write( "*changes in working capital would be operating capital this year less the operating capital in the previous year.\r<BR>\n" );
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document.write( "6. EVA = NOPAT - (capital * cost of capital)\" </SPAN>\n" );
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