During the year, they had cash flow from operations of $75,000 and cash flow from investing of -$15,000. The purchase of PPE during the year was $17,000 and payment of dividends of $12,000. What is the free cash flow for the year? $59,000 $58,000 $60,000 $46,000

During the year, they had cash flow from operations of $75,000 and cash flow from investing of -$15,000. The purchase of PPE during the year was $17,000 and payment of dividends of $12,000. What is the free cash flow for the year? $59,000 $58,000 $60,000 $46,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 6BCRQ

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$59,000

$58,000

$60,000

$46,000

Definition Definition Cash that is left over after a company has paid for its operating and capital expenses. Unlike net income or earnings, free cash flow excludes non-cash expenses of the income statement and includes the expenditures on equipment and assets. Free cash flow also helps potential shareholders to evaluate how quickly the company can pay interest and dividends.

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