Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During the year, Xero, Inc experienced an increase in net fixed assets of 5304,000 and had depreciation of $20,000. It also experienced an increase in

image text in transcribed
image text in transcribed
During the year, Xero, Inc experienced an increase in net fixed assets of 5304,000 and had depreciation of $20,000. It also experienced an increase in current assets of $152,000 and an increase in accounts payable of $74,000 If operating cash flow (OCF) for the year was 5695,000, calculate the firm's free cash flow (FCF) for the year The free cash flow (FCE) is S Round to the nearest dollar) Free cash flow (FCF ) is the amount of cash flow available to investors (debtholders and shareholders) after the firm has met the cost of operations and paid for both net fixed assets and net current assets. FCF can be solved for using the following equation. FCF = OCF - NFAI-NCAI, were OCF is the operating cash flow, NFAI is the net fixed asset investment, and NCAI is the net current asset investment OK

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Impact On Decision Makers

Authors: Gary A. Porter, Curtis L. Norton

6th Edition

0324655231, 978-0324655230

More Books

Students also viewed these Accounting questions

Question

Explain the steps to reduce the ER diagram to ER database schema.

Answered: 1 week ago

Question

Describe key employee expectations.

Answered: 1 week ago

Question

Describe current business topics and their impact on HRM.

Answered: 1 week ago

Question

Define human resources management (HRM).

Answered: 1 week ago