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We discuss the computation of free cash flow. We calculate free cash flow by subtracting capital expenditures and dividends from the net cash provided by
We discuss the computation of free cash flow. We calculate free cash flow by subtracting capital expenditures and dividends from the net cash provided by operating activities. A positive number indicates that the company generated enough cash from its operating activities to fund its capital expenditures and dividend payments. Free Cash Flow Knowledge Check 01 Selected data from the statement of cash flows of Park Corporation are as follows: $ 46,000 Operating Activities Net cash provided by (used in) operating activities Investing Activities Additions to property, plant, and equipment Proceeds from sale of equipment Net cash provided by (used in investing activities Financing Activities Issuance of bonds payable Issuance of common stock Cash dividends paid Net cash provided by (used in) financing activities $(200,000) 50,000 $(150,000) $ 150,000 100,000 (40,000) $ 210,000 What is the amount of free cash flow for the year? O $(194,000) O $194,000 $(154,000) O $6.000
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