Question
In: Finance
On a Statement of Cash Flows, free cash flow (i.e. the cash flow available for debt...
On a Statement of Cash Flows, free cash flow (i.e. the cash flow available for debt service and payments to equity holders) can be found by:
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none of these answers |
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by subtracting Cash Flows from Investing Activities from Cash Flows from Operating Activities |
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looking at Net Cash Flow, at the bottom of the Statement of Cash Flows |
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subtracting Cash Flows from Investing Activities from the sum of Depreciation and Amortization |
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looking at Cash Flows from Operating Activities |
Solutions
Expert Solution
Answer is None of These answers.
As Free cash flow = Cash Fow from Operations - Capital Expenditure
or
FCF = Net Income + Non-Cash Expenses – Incrase in Working Capital – Capital Expenditures
jeff jeffy answered 2 years agoRelated Solutions
Statement of Cash Flows The Statement of Cash Flows (also referred to as the cash flow...
Statement of Cash Flows
The Statement of Cash Flows (also referred to as the cash flow
statement) is one of the three key financial statements that report
the cash generated and spent during a specific period of time
(e.g., a month, quarter, or year). The statement of cash flows acts
as a bridge between the income statement and balance sheet by
showing how money moved in and out of the business.
Three Sections of the Statement of Cash Flows:
Operating...
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Cash
$423
Accounts
Receivable
15% of Total Revenue
Accounts
Payable
20% of Cost of Goods Sold
Notes
Payable
$800
Inventory
$2,900
Net Fixed
Assets
$14,800
Long-term
Debt
$3,500
Common
Stock
$10,000
Total
Revenue
$7,200
Cost of Goods
Sold
50% of Total Revenue
Depreciation
Expense
$1,200
Selling, General, & Administrative
Expense $1,000
Interest
Expense
10% of Long-term Debt
Income
Taxes
35% of Taxable Income
13-8A Prepare a statement of cash flows - direct method, and compute free cash flow. NOSKER...
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NOSKER COMPANY
Comparative Balance Sheet
December 31
Assets
2017
2016
Cash
$38,000
$20,000
Accounts Receivable
30,000
14,000
Inventory
27,000
20,000
Equipment
60,000
78,000
Accumulated depreciation--equipment
(29,000)
(24,000)
Total
$126,000
$108,000
Liabilities and Stockholders' Equity
Accounts payable
$24,000
$15,000
Income taxes payable
7,000
8,000
Bonds payable
27,000
33,000
Common stock
18,000
14,000
Retained earnings
50,000
38,000
Total
$126,000
$108,000
NOSKER COMPANY
Income Statement
For...
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Please i need a new answer.
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