When Finding FCFEo = NI + NCC - FC - WC + Net Borrowing
I used FCFEo = CFO - FC + Net borrowing and from the CF statement got CFO = 37450 + 10500 = 47950
Then FCFEo = 47950 + 4000 - 15000 = 36950
Why cant I do this? The FC and Net borrowing #'s are correct cause in the answer the use the first equation which has those same variables. What’s wrong with my equation and why cant I use CFO. On the exam I would’ve did this to make it easier
Thanks