ANSWERS TO QUESTIONS

Free cash flow = $860,000 – $75,000 – $20,000 = $765,000. 32. Free cash flow is net cash provided by operating activities less capital expenditures and dividends. The purpose of free cash flow analysis is to determine the amount of discretionary cash flow a company has for purchasing additional investments, retiring its debt, purchasing treasury stock, or simply adding to its liquidity ... ................
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