A firm reports that in a certain year it had a net income of $4.3 million,...

Question

Question

business finance

Answer 1

Answer #1

Free Cash flow formula is as below:

Operating Income - Taxes + Depreciation - Capital Expenditure + Decrease in Working capital

Hence we'll apply the given amounts mentioned in the problem to the above formula we'd get

4.3 + 3 - 2.1 + 1.2 =‬ 6.4 Million

6.4 is the free cash flow.

Answer 2

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