Alliance Atlantis Communications Inc. reported cash provided by operating activities of $123,100,000 and revenues of $1,175,400,000 during 2006. Cash spent on plant asset additions during the year was $20,800,000. Calculate free cash flow.
Alliance Atlantis Communications Inc. reported cash provided by operating activities of $123,100,000 and revenues of $1,175,400,000 during 2006. Cash spent on plant asset additions during the year was $20,800,000. Calculate free cash flow.
Alliance Atlantis Communications Inc. reported cash provided by operating activities of $123,100,000 and revenues of $1,175,400,000 during 2006. Cash spent on plant asset additions during the year was $20,800,000. Calculate free cash flow.
Transcribed Image Text:Alliance Atlantis Communications Inc.
reported cash provided by operating
activities of $123,100,000 and revenues
of $1,175,400,000 during 2006. Cash
spent on plant asset additions during
the year was $20,800,000. Calculate
free cash flow.
Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).
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