Free cash flow formula
Added by Shan J.
Step 1
Start with net income: This is the company's total earnings or profit. Show more…
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Which of the following statements best describes free cash flow
Sanchit J.
which of the following statements best describes free cash flow? 1. your existing business generates 135,000 in EBIT. 2. The corporate true rate applicable to your business is 25%. 3. The depreciation expense reported in the financial statement is 25,714 4. you don't need to spend any money for new equipment in your existing cafe, however you need 20,250 of additional cash 5. you also need to purchase 10,800 in additional supplies-such as table clothes and napkins and more formal tableware on credit 6. It is also estimated that your accruals, including taxes and wages payable, will increased by 6,750. Based on your evaluation you have in cash flow. Free cash flow can be used for various reasons, including distributing it to stockholders and debtholders. Which of the net a case of free cash flow?
Nick J.
During 2025, blue industries reported cash provided by operations of $921000, cash used in investing of $796000, and cash used in financing of $220000. In addition, cash spent on plant assets during the period was $320000. Average current liabilities were $754000 and average total liabilities were $1991000. No dividends were paid. Based on this information, what was blue’s free cash flow?
Breanna O.
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Principles of Accounting Volume 1: Financial Accounting
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