Cash flows from operating activities are $200,000; cash flows from financing activities are $150,000; capital expenditures are $90,000; and dividends are $20,000.

a. How much is free cash flow?

Question

Business

Mariam

31 January, 14:31

Cash flows from operating activities are $200,000; cash flows from financing activities are $150,000; capital expenditures are $90,000; and dividends are $20,000.

a. How much is free cash flow?

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Answers (1)

Know the Answer?

Kassidy Murphy · Answer 1

free cash flow is $90,000

Explanation:

given data

operating activities = $200,000

cash flows from financing activities = $150,000

capital expenditures = $90,000

dividends = $20,000

solution

we get here free cash flow that is express as

free cash flow = operating activities - capital expenditures - dividends paid ... 1

put here value and we get

free cash flow = $200,000 - $90,000 - $20,000

free cash flow = $90,000

so free cash flow is $90,000

Cash flows from operating activities are $200,000; cash flows from financing activities are $150,000; capital expenditures are $90,000; and dividends are $20,000.a. How much is free cash flow?

Cash flows from operating activities are $200,000; cash flows from financing activities are $150,000; capital expenditures are $90,000; and dividends are $20,000.

a. How much is free cash flow?