Based on the following, what is free cash flow? Cash from Operations $155,000 Cash from Investing $(30,000) Cash from Financing $ 30,000 Operations includes $2,000 for depreciation. Investing includes the purchase of a replacement asset for $100,000 and the sale of the one used in production, which is now obsolete, for $70,000. Financing is made up of $70,000 of borrowing and $25,000 of dividends paid.
Based on the following, what is free cash flow? Cash from Operations $155,000 Cash from Investing $(30,000) Cash from Financing $ 30,000 Operations includes $2,000 for depreciation. Investing includes the purchase of a replacement asset for $100,000 and the sale of the one used in production, which is now obsolete, for $70,000. Financing is made up of $70,000 of borrowing and $25,000 of dividends paid.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Based on the following, what is free cash flow?
Cash from Operations $155,000
Cash from Investing $(30,000)
Cash from Financing $ 30,000
Operations includes $2,000 for depreciation. Investing includes the purchase of a replacement asset
for $100,000 and the sale of the one used in production, which is now obsolete, for $70,000.
Financing is made up of $70,000 of borrowing and $25,000 of dividends paid.
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