Basic

Question 1

Net Working Capital

Answer 1

Current Asset - Current Liabilities

Question 2

Operating Cash Flow

Answer 2

Net Operating Income (1-Tax rate) + Depreciation and amortization expense
or
Net Operating Profit after taxes + Depreciation and amortization expense

Question 3

Free Cash Flow

Answer 3

Operating cash Flow - Investments/Capital Expenditures

Question 4

Economic Value Added

Answer 4

Net Operating Income (1-Tax rate) - [(Invested Capital) x (After-tax cost of capital as a percent
OR
EVA = NOPAT – (WACC * Invested Capital)
-NOPAT = Net Operating Profit After Tax
-WACC = Weighted Average Cost of Capital
-Invested Capital = Shareholders’ Equity + Net Debt at the beginning of the period (Alternatively, Invested Capital can be calculated by taking Total Assets minus Cash minus Non-interest Bearing Liabilities)

Question 5

Earnings per share

Answer 5

Net Income / Shares (Capital)