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23 May, 08:57

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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  1. 23 May, 09:09
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    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
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