Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 12 - Statement of Cash Flows - Brief Exercises: BE12-11

Answer

Calculation of free cash flows: Form the given data:Cash provided by operations is 123,100,000 dollars Capital expenditure is 20,800,000 dollars By substituting these values in the above formula: Free cash flows = 123,100,000 - 20,800,000 = 102,300,000 Free cash flows = 102,300,000 dollars

Work Step by Step

Formula for calculation of free cash flows is as below: Free cash flows = Cash provided by operations - capital expenditure-cash dividends
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