During the year, Xero, Inc., experienced an increase in net fixed assets of $301,000 and had...

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During the year, Xero, Inc., experienced an increase in net fixed assets of $301,000 and had depreciation of $198,000 It abo experienced an increase in current assets of $154,000 and an increase in accounts payable of $80,000 If operating cash flow (OCF ) for the year was $700,000, calculate the firms free cash flow (FCF ) for the year The free cash flow (FCF ) is S(Round to the nearest dollar)

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Answer 1

Answer #1

Computation of free cash flow:

Particulars	Amounts
Operation cash flow	700000
Depreciation	198000

Capital expenditure	(301000)
Working capital (Current assets-Current liabilities) (154000-80000)	74000
Free cash flow	671000

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Answer 2

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