A company paid out $1,000,000 in dividends to shareholders in the most recent fiscal year while also increasing the retained earnings by $2,000,000. In addition, it paid out $500,000 in interest to creditors, recognized $1,500,000 in depreciation expense, and incurred $750,000 in capital expenditures. The company had current assets totalling $3,000,000 at the beginning of the year and $3,500,000 at the end of the year. The company's current liabilities were $2,400,000 at the beginning of the year and $2,750,000 at the end of the year. What is this company's free cash flow for the most recent fiscal year?
A company paid out $1,000,000 in dividends to shareholders in the most recent fiscal year while also increasing the retained earnings by $2,000,000. In addition, it paid out $500,000 in interest to creditors, recognized $1,500,000 in depreciation expense, and incurred $750,000 in capital expenditures. The company had current assets totalling $3,000,000 at the beginning of the year and $3,500,000 at the end of the year. The company's current liabilities were $2,400,000 at the beginning of the year and $2,750,000 at the end of the year. What is this company's free cash flow for the most recent fiscal year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need help with question solution to this problem
Transcribed Image Text:A company paid out $1,000,000 in dividends to
shareholders in the most recent fiscal year while
also increasing the retained earnings by
$2,000,000. In addition, it paid out $500,000 in
interest to creditors, recognized $1,500,000 in
depreciation expense, and incurred $750,000 in
capital expenditures. The company had current
assets totalling $3,000,000 at the beginning of the
year and $3,500,000 at the end of the year. The
company's current liabilities were $2,400,000 at
the beginning of the year and $2,750,000 at the end
of the year. What is this company's free cash flow
for the most recent fiscal year?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education