A Ltd. Reported the following information on its statement of cashflows: Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities 2021 2020 $280,000 $240,000 ($240,000) ($160,000) ($40,000) ($64,000) It is provided that 78% of the net cashflows used in investing activities were only to replace existing capacity. Determine the amount of free cash flow for 2021 and 2020. Answer Choices: a. Free cash flow for 2021 and 2020 are $92,800 and $115,200, respectively. b. Free cash flow for 2021 and 2020 are Nil and $16,000, respectively. c. Free cash flow for 2021 and 2020 are $61,600 and $52,800, respectively. d. Free cash flow for 2021 and 2020 are $248,800 and $190,080, respectively.

A Ltd. Reported the following information on its statement of cashflows: Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities 2021 2020 $280,000 $240,000 ($240,000) ($160,000) ($40,000) ($64,000) It is provided that 78% of the net cashflows used in investing activities were only to replace existing capacity. Determine the amount of free cash flow for 2021 and 2020. Answer Choices: a. Free cash flow for 2021 and 2020 are $92,800 and $115,200, respectively. b. Free cash flow for 2021 and 2020 are Nil and $16,000, respectively. c. Free cash flow for 2021 and 2020 are $61,600 and $52,800, respectively. d. Free cash flow for 2021 and 2020 are $248,800 and $190,080, respectively.

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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