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...
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The Statement of Cash Flows (also referred to as the cash flow
statement) is one of the three key financial statements that report
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(e.g., a month, quarter, or year). The statement of cash flows acts
as a bridge between the income statement and balance sheet by
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Three Sections of the Statement of Cash Flows:
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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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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)
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$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
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Please i need a new answer.
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