Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 5 - Balance Sheet and Statement of Cash Flows - Questions - Page 280: 27

Answer

Free cash flow = $860,000 – 75,000 –30,000 = 755,000 $

Work Step by Step

Free cash flow can otherwise be defined as cash generated by a company through its operations less expenditures, and that’s why we are taking operating activities less capital expenditure and dividends’ amount, leaving us with the free cash flow to Tanizaki.
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