To calculate Free Cash Flow to Equity-Holders and Free Cash Flow to All Investors there is an adjustment for the change in Operating Cash. Why is this adjustment needed? b) Continuing,Operating Cash decreases in a given year, how does the decrease affect Free Cash Flow to Equity-Holders and Free Cash Flow to All Investors in that year. Why? c) if Operating Cash increases in a given year, how does the increase affect Free Cash Flow to Equity- Holders and Free Cash Flow to All Investors in that vear Why?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
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M4
To calculate Free Cash Flow to Equity-Holders and
Free Cash Flow to All Investors there is an
adjustment for the change in Operating Cash. Why is
this adjustment needed? b) Continuing,Operating
Cash decreases in a given year, how does the
decrease affect Free Cash Flow to Equity-Holders and
Free Cash Flow to All Investors in that year. Why?
c) if Operating Cash increases in a given year, how
does the increase affect Free Cash Flow to Equity-
Holders and Free Cash Flow to All Investors in that
year. Why?
Transcribed Image Text:To calculate Free Cash Flow to Equity-Holders and Free Cash Flow to All Investors there is an adjustment for the change in Operating Cash. Why is this adjustment needed? b) Continuing,Operating Cash decreases in a given year, how does the decrease affect Free Cash Flow to Equity-Holders and Free Cash Flow to All Investors in that year. Why? c) if Operating Cash increases in a given year, how does the increase affect Free Cash Flow to Equity- Holders and Free Cash Flow to All Investors in that year. Why?
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