Calculate a firm's free cash flow (“FCF") from the Statement of Cash Flows if Net income is $60,000, depreciation expense is $10,000, working capital investment (a use of cash) is $20,000, Cash Flow From Operations is $50,000 and net Capital Expenditures (a use of cash) are $40,000. O a) $10,000 O b) $40,000 c) $0 d) $100,000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 14MC: If beginning cash equaled $10,000 and ending cash equals $19,000, which is true? A. Operating cash...
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Calculate a firm’s free cash flow (“FCF”) from the Statement of Cash Flows if Net income is $60,000, depreciation expense is $10,000, working capital investment (a use of cash) is $20,000, Cash Flow From Operations is $50,000 and net Capital Expenditures (a use of cash) are $40,000.

Calculate a firm's free cash flow ("FCF") from the Statement of Cash Flows if Net
income is $60,000, depreciation expense is $10,000, working capital investment (a
use of cash) is $20,000, Cash Flow From Operations is $50,000 and net Capital
Expenditures (a use of cash) are $40,000.
a) $10,000
b) $40,000
c) $0
d) $100,000
Transcribed Image Text:Calculate a firm's free cash flow ("FCF") from the Statement of Cash Flows if Net income is $60,000, depreciation expense is $10,000, working capital investment (a use of cash) is $20,000, Cash Flow From Operations is $50,000 and net Capital Expenditures (a use of cash) are $40,000. a) $10,000 b) $40,000 c) $0 d) $100,000
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