Below is a summary of part of IBM's Statement of Cash Flows for the year ended December 31, 2001 (inmillions of dollars). The firm faces a 37% statutory tax rate.Net cash provided from operating activitics9,274Cash flow from investing activities:Payments for plant, rental machines and other property(5,616)Proceeds from disposition of plant, rental machincs and other property1,619Investment in software(565)Purchases of marketable securitics(1,079)Proceeds from marketable securitics1,393Net cash used in investing activitics(4,248)Supplemental data:Cash paid during the year for:Income taxes2,697Interest paid1,447Interest received617From this information, calculate free cash flow for 2001.7827O 8,44409,6975,235

Free cash flow is the cash a company generates after deducting financial outflows to conduct its…

millions of dollars). The firm faces a 37% statutory tax rate. Net cash provided from operating activitics Cash flow from investing activities: Payments for plant, rental machines and other property Proceeds from disposition of plant, rental machines and other property Investment in software Purchases of marketable securitics Proceeds from marketable securities

millions of dollars). The firm faces a 37% statutory tax rate. Net cash provided from operating activitics Cash flow from investing activities: Payments for plant, rental machines and other property Proceeds from disposition of plant, rental machines and other property Investment in software Purchases of marketable securitics Proceeds from marketable securities

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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