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Using the most recent annual report of the corporation that you've been researching in these past weeks, please calculate the free cash flow for the
Using the most recent annual report of the corporation that you've been researching in these past weeks, please calculate the free cash flow for the most recent year. Please let us know if your corporation has positive free cash flow. Why is a positive free cash flow considered favorable? Can free cash flow be a negative number? What does a lack of free cash flow indicate for a business? Please indicate why free cash flow may be a better indicator than Cash Flows from Operating Activities of financial strength.
Annual Income Statement (values in 000's) Period Ending Net Income Get Quarterly Data 12/31/2013 $1,010,000 Trend 12/31/2016 12/31/2015 12/31/2014 $966,000 $892,000 $835,000 Cash Flows-Operating Activities Depreciation Net Income Adjustments Changes in Operating Activities Accounts Receivable L-- LI $1,200,000 $501,000 $353,000 $316,000 $247,000 $108,000 $100,000 $273,000 $84,000 $32,000 ($372,000)($329,000) ($2,000) $2,155,000 ($177,000) $198,000 ($2,000) ($331,000) ($335,000) $553,000 $1,331,000 $1,264,000 ($40,000) Changes in Inventories ($54,000) $6,000 Other Operating Activities Liabilities $181,000 ($204,000) $1,259,000 Net Cash Flow-Operating Cash Flows-Investing Activities Capital Expenditures ($136,000)($111,000) ($107,000) ($74,000) Investments $0 ($1,041,000) ($3,605,000) $2,000 ($1,177,000) ($3,716,000) ($84,000) $0 $21,000 $376,000 $6,000 $308,000 Other Investing Activities Net Cash Flows-InvestingStep by Step Solution
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