Holmes, Inc. expects net cash flow from operating activities to be $160,000, and the company plans purchases of equipment of $83,000 and repurchases of stock of $24,000. What is Holmes’s free cash flow? $53,000 $160,000 $77,000  $83,000

Financial Management: Theory & Practice
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Chapter2: Financial Statements, Cash Flow,and Taxes
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Holmes, Inc. expects net cash flow from operating activities to be $160,000, and the company plans purchases of equipment of $83,000 and repurchases of stock of $24,000. What is Holmes’s free cash flow?

  • $53,000
  • $160,000
  • $77,000 
  • $83,000
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