Question

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?

          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?

Added by Janet S.

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