6. Free cash flow Accounting statements represent a company's earnings, but this is not the real cash that a company generates. Earnings data can be manipulated and can be deceiving. Thus, corporate decision makers and security analysts focus on the free cash flow that a firm generates to analyze the companys real cash position Which of the following statements best describes free cash flow? The amount of arm's available cash used to write off capital expenditures and depreciation The amount of arms available cash that can be used without harming operations of the ability to produce ruture cash flow Suppose you are the only owner of a chain of coffee shops near Universites. Your current afisare doing well, but you are interested in starting a fine dining restaurantYou decide to the cash generated from your iting business to enter into a new business. Your accountant provides you with the following data on your current financial performance Financial update as of June 15 Your existing business generates $87,000 in EBIT The corporate tax rate applicable to your business is 35% The depreciation expense reported in the financial statements is 516,571 - You don't need to spend any money for new equipment in your existing cards, however, you do need $13,050 of additional cash You also need to purchase 56,960 in additional supplies-uch as cloth, tableclothes and napkins, and more formal tableware on credit . It is also estimated that your accruals, including taxes and wages payable will increase by 54,350. Based on your evaluation you have how Free cash flow can be used for various reason, induting distributing it to stockholders and there. Which of the towing is not a free how Acquiring operating assets Distributing dividends to stopies