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:

none of these answers

by subtracting Cash Flows from Investing Activities from Cash Flows from Operating Activities

looking at Net Cash Flow, at the bottom of the Statement of Cash Flows

subtracting Cash Flows from Investing Activities from the sum of Depreciation and Amortization

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


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