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Explain why free cash flow often provides better information than Net cash provides by operating activities. $59,000 OBERMEYER CORPORATION Statement of Cash Flows-Indirect Method For
Explain why free cash flow often provides better information than "Net cash provides by operating activities."
$59,000 OBERMEYER CORPORATION Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2019 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $9.100 Loss on disposal of plant assets 9.500 Increase in inventory (5,000) Decrease in accounts receivable 3.300 Decrease in accounts payable (2.200 ) Net cash provided by operating activities Cash flows from investing activities Sale of investments 3,100 Purchase of equipment (27,000) Net cash used by investing activities Cash flows from financing activities Issuance of stock 20.000 Payment on long-term note payable (10.000) Payment for dividends (15.000) Net cash used by financing activities Net increase in cash Cash at beginning of year Cash at end of year 14,700 73.700 (23.900) (5.000) 44.800 13.000 $57.800 (b) Explain why free cash flow often provides better information than "Net cash provided by operating acStep by Step Solution
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