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

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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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.

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