Question
Westlake Corporation has the following information (obtained) from its balance sheet, income statement and statement of retained earnings.
|
Increase in current assets
|
$50
|
|
EBIT
|
$75
|
|
Interest expense
|
$25
|
|
Increase in accounts payable
|
$35
|
|
dividends
|
$15
|
|
Increase in common stock
|
$20
|
|
Increase in gross fixed assets
|
$35
|
|
Depreciation expense
|
$12
|
|
Income taxes
|
$17
|
1. Compute its free cash flow from operations.
2. What are the uses of Westlake's free cash flows.
3. Interpret the results above.