During the year, a company had net income of $145,000 and cash flow from operations of $195,000.

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During the year, a company had net income of $145,000 and cash flow from operations of $195,000. During the year the company also bought a new piece of equipment for $45,000 and $10,000 of dividends were paid.
Required
What is the company's free cash flow for the year?
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Financial ACCT2

ISBN: 978-1111530761

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

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