Compute free cash flow for 2022. Show your work. Cash Flows from Operating ActivitlesNet IncomeAdjustments to reconcile net income toNet Cash Provided by Operating Activities ✓Depreciation ExpenseGain on Disposal of EquipmentIncrease In Accounts ReceivableCORONADO COMPANYStatement of Cash FlowsFor the Year Ended December 31, 2022Decrease in InventoryDecrease in Accounts PayableNet Cash Provided by Operating Activities ✓Cash Flows from Investing ActivitiesSale of Land69$49,680(5,520)(10,120)19,320(9,200)25,76065992,00044,160136,160 Sale of EquipmentPurchase of EquipmentNet Cash used by Investing ActivitiesCash Flows from Financing ActivitiesIssuance of Common StockRedemption of BondsPayment of Cash DividendsNet Cash used by Financing ActivitiesNet Increase in CashCash at Beginning of PerlodCash at End of Perlod33,120(101,200)38,640(55,200)(30,360)(42,320)(46,920)46,92020,24067,160

FREE CASH FLOW Free Cash Flow is the Cash Resources of the Organisation which is Left After Capital…

Answered: Compute free cash flow for 2022. Show…

Business

Accounting

Compute free cash flow for 2022. Show your work.

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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Question

Compute free cash flow for 2022. Show your work.

Cash Flows from Operating Activitles
Net Income
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities ✓
Depreciation Expense
Gain on Disposal of Equipment
Increase In Accounts Receivable
CORONADO COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2022
Decrease in Inventory
Decrease in Accounts Payable
Net Cash Provided by Operating Activities ✓
Cash Flows from Investing Activities
Sale of Land
69
$
49,680
(5,520)
(10,120)
19,320
(9,200)
25,760
659
92,000
44,160
136,160

Sale of Equipment
Purchase of Equipment
Net Cash used by Investing Activities
Cash Flows from Financing Activities
Issuance of Common Stock
Redemption of Bonds
Payment of Cash Dividends
Net Cash used by Financing Activities
Net Increase in Cash
Cash at Beginning of Perlod
Cash at End of Perlod
33,120
(101,200)
38,640
(55,200)
(30,360)
(42,320)
(46,920)
46,920
20,240
67,160

Definition Definition Cash that is left over after a company has paid for its operating and capital expenses. Unlike net income or earnings, free cash flow excludes non-cash expenses of the income statement and includes the expenditures on equipment and assets. Free cash flow also helps potential shareholders to evaluate how quickly the company can pay interest and dividends.

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