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 company's. real cash position. Which of the following statements best describes free cash flaw? The excess cash generated by revenues iess all operating expenses. The cash flow avalable for distribution to all investors after the company has made all investments in fixed assets and workang capital necessary to sustain a firm's ongoing operations Suppose you are the only owner of a chain of cotfee shops near universities. Your current cafes are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cosh generated from your existing business to enter into a new business, Your accountant provides. you With the following data on your cirrent financial performance: Suppose you are the only owner of a chain of coffee shops near universities. Your current cafs are doing well, but you are interested in starting a fine-dining restasrant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financlal performance: Financlal update as of June 15 - Your existing business generates $135,000 in E8rT. - The corporate tax rate applicable to your business is 25%. - The depreciation expense reported in the financial statements is $25,714, - You dont need to spend any money for new equipment in your existing cats; hawever, you do need 520,250 of additional cosh. - You atso need to purchase 510,800 in odditional supplles-such as tableciothes and napkins, and more formal tableware-on credit. - It is also estimated that your accruats, including taxes and woges payable, will increase by $6,750. Based on your evaluation you have. in free cash flow. Free cash now can be useo for various reasons, including distributing it to stockholders and debtholders. Which of the following is not a use of free cash flow? Repurchusing common stock. Aceuining operating assets