Attempts: Keep the Highest: 13 6. Free cash flow A Aa Amunting statements represent a company's earings, but this is not the real cash that a company generates. Eaming data can be manipulated and can be deceiving. Thus, corporate decision makes and security analysis focus on the free cash flow that a fim generates to analyze the company's real cash position Which of the following statements best describes free cash flow The amount of a firm's available cash led to write off capital expenditures and depredation The amount of a firm's available cash that can be used without harming operations or the ability to produce future cash flows Suppose you are the only owner of a chain of coffee shops near Universities. Your current cars are doing well, but you are interested in starting a fine-dining restaurant. 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 financial - performance: Financial update as of June 15 Your existing businex generates $99,000 in Eer. The corporate tax rate applicable to your business is 35%. The depredation experez reported in the financial statements is $13,357. . You dont need to spend any money for new equipment in your existing cars; however, you do need $14,850 of additional ch. . You also need to purchase $7,920 in additional supplies such as cloth tableclothes and napkins, and more forma tablewars-on credit. It is estimated that your corals, including taxes and wages payable, will increase by $4,990. Based on your evaluation you have in free cash flow. Can a company have negative free cash flow? Yes