The 2013 Income Statement for Betty's Barstools Shows That Depreciation

The 2013 income statement for Betty's Barstools shows that depreciation expense is $100 million, EBIT is $400 million, and taxes are $120 million. At the end of the year, the balance of gross fixed assets was $510 million. The increase in net operating working capital during the year was $94 million. Betty's free cash flow for the year was $625 million. What was the beginning of year balance for gross fixed assets?

A) $359 million
B) $380 million
C) $849 million
D) $1,094 million

Correct Answer:

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