Pick one of the options below:

Free cash flow can be used for various reasons, including distributing it to stockholders and debtholders. Which of the following is not a use of free cash flow?

Retiring debtthat is, to pay off debt

Acquiring operating assets

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 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 business generates $111,000 in EBIT. The corporate tax rate applicable to your business is 35%. The depreciation expense reported in the financial statements is $21,143. You don't need to spend any money for new equipment in your existing cafs; however, you do need $16,650 of additional cash. You also need to purchase $8,880 in additional supplies-such as tableclothes and napkins, and more formal tableware-on credit. It is also estimated that your accruals, including taxes and wages payable, will increase by $5,550. Based on your evaluation, you have $98,843 in free cash flow. Free cash flow can be used for vario $82,193 Including distributing it to stockholders and debtholders. Which of the following is not a use of free cash flow? $101,063 Retiring debt-that is, to $148,793 $98,843 Acquiring operating asset