Calculation of Free Cash Flow (FCF).xlsx

	A	B	C
1	FCF Model
2
3	Corporate Tax Rate	25%
4
5	Column A	Column B	Column C
6	INCOME STATEMENT INPUTS	Year 1	Year 2
7	Revenue	1000000	1200000
8	Cost of Goods Sold (COGS)	400000	480000
9	Operating Expenses	200000	240000
10	Depreciation & Amortization	50000	50000
11	Capital Expenditures (CapEx)	100000	120000
12	WORKING CAPITAL INPUTS	Year 1	Year 2
13	Accounts Receivable	100000	150000
14	Inventory	80000	100000
15	Accounts Payable	60000	75000
16
17	PROFITABILITY CALCULATIONS
18	Operating Income (EBIT)	350000	430000
19	EBIT	87500	107500
20	NOPAT	262500	322500
21
22	NET WORKING CAPITAL
23	Current Operating Assets	180000	250000
24	Current Operating Liabilities	60000	75000
25	NET WORKING CAPITAL	120000	175000
26
27	FREE CASH FLOW DERIVATION		Year 2
28	NOPAT		322500
29	Add: Depreciation		50000
30	Less: CapEx		-120000
31	Less: Change in NWC		-55000
32	UNLEVERED FREE CASH FLOW		197500
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