Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 5 - Balance Sheet and Statement of Cash Flows - Review and Practice - Questions - Page 238: 27

Answer

Free cash flow =$860,000-$75,000-$35,000= $755, 000

Work Step by Step

Ideally, free cash flow is the cash a company produces through its operations after you less the cost of expenditure on assets. the formulae is as follows: Free Cash Flow= Operating Cash Flow- Capital Expenditure
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