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A compony reported a net income of $340 million for the most recent fiscal year. The firm had depreciation expenses of $115 million and capital expenditures of $145 million. Although it had no interest expense, the firm did have an increase in net working capital of $30 million. What is the company's free cash flow? a. $630 million b. $340 million c. $280 million d. $50 million

A compony reported a net income of $340 million for the most recent fiscal year. The firm had depreciation expenses of $115 million and capital expenditures of $145 million. Although it had no interest expense, the firm did have an increase in net working capital of $30 million. What is the company's free cash flow? a. $630 million b. $340 million c. $280 million d. $50 million

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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what is the company's free cash flow ?

A compony reported a net income of $340 million for the most recent fiscal year. The firm had depreciation expenses of $115 million and capital expenditures of $145 million. Although it had no interest expense, the firm did have an increase in net working capital of $30 million. What is the company's free cash flow? a. $630 million b. $340 million c. $280 million d. $50 million
Transcribed Image Text:A compony reported a net income of $340 million for the most recent fiscal year. The firm had depreciation expenses of $115 million and capital expenditures of $145 million. Although it had no interest expense, the firm did have an increase in net working capital of $30 million. What is the company's free cash flow? a. $630 million b. $340 million c. $280 million d. $50 million
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