ABC Corporation has the following Accounting information for the year: Net Income: $1,200,000 Depreciation: $200,000 Changes in Working Capital: -$50,000 (increase in working capital) ⚫ Capital Expenditures: $150,000 Calculate the Free Cash Flow (FCF) for ABC Corporation.
ABC Corporation has the following Accounting information for the year: Net Income: $1,200,000 Depreciation: $200,000 Changes in Working Capital: -$50,000 (increase in working capital) ⚫ Capital Expenditures: $150,000 Calculate the Free Cash Flow (FCF) for ABC Corporation.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...
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Transcribed Image Text:ABC Corporation has the following Accounting information for the year:
Net Income: $1,200,000
Depreciation: $200,000
Changes in Working Capital: -$50,000 (increase in working capital)
⚫ Capital Expenditures: $150,000
Calculate the Free Cash Flow (FCF) for ABC Corporation.
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