Cash Flow

Net OPerating After Tax (NOPAT)= EBIT x ( 1 - T)

Operating Cash FLow (OCF) = NOPAT + Depreciation

OCF = [EBIT x (1-T)] + Depreciation

Free Cash Flow (FCF) = OCF - NFAI - NCAI

NFAI = Change In Net Fixed Assets + Depreciation
NCAI = Change In Current Assets - Change In Account Payable and Accruals

This FCF can be used to pay it`s Creditors and Equity Holders.

Dik:

EBIT = 2700 USD
Tax = 40%
Depreciation = 1600 USD
Change In Fixed Assets = [15.000-14.800] = 200
Change In Current Assets = [ 1600-1500] = 100
Change In A/P and Accruals = [300-200] =100

dit :

a. OCF ?

 = [2700  (1 - 0,4)] + 1600 = 3220 USD

b. CF from Operation ?

 =  1400 +1600= 3000

c. NOPAT ?

 = 2700 x (1-0,4) = 1620

d. FCF  ?

=  OCF - NFAI - NCAI

=  3220 -  [ (15.000-14.800)+1600] - [(1600-1500) - (300-200)]
= 3220 -1400 - 0
=  1820