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Calculating Free Cash Flow. Below are data from the financial statements of Berkshire Audio. Net income $3,750.00 Common stock issued (net) $750.00 Cash from operations
Calculating Free Cash Flow. Below are data from the financial statements of Berkshire Audio. Net income $3,750.00 Common stock issued (net) $750.00 Cash from operations (net) $4,687.50 Cash from investing (net) $(1,500.00) Change in debt (net) $(1,781.25) Dividends paid $1,500.00 Change in operating cash (net) Change in common equity (net) $656.25 $3,000.00 Compute the company's free cash flow to equity using three different methods. (Each method should yield the same answer.) Note: Round each entry to two decimal places. Note: Watch positive and negative signs carefully. Refer to Exhibit 12.5 for guidance. Method 1 Dividends paid less net issuance of common stock $ Free cash flow to equity $ Method 2 Cash from operations $ less an increase in operating cash plus cash from investing plus increase in debt Free cash flow to equity $ Method 3 Net income $ less increase in common equity Free cash flow to equity $
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