Some investors prefer to use free cash flows as a performance measure instead of earnings. This year, Baldwin Corp. reported the following financial data: Net earnings on the income statement: $12,000 Net cash inflow from operating activities: $8,500 Net cash outflow from investing activities: $6,200 Net cash outflow from financing activities: $2,500 What is the best estimate of free cash flows for this year based on the information above?
Some investors prefer to use free cash flows as a performance measure instead of earnings. This year, Baldwin Corp. reported the following financial data: Net earnings on the income statement: $12,000 Net cash inflow from operating activities: $8,500 Net cash outflow from investing activities: $6,200 Net cash outflow from financing activities: $2,500 What is the best estimate of free cash flows for this year based on the information above?
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
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Transcribed Image Text:Some investors prefer to use free cash flows as a performance
measure instead of earnings. This year, Baldwin Corp. reported
the following financial data:
Net earnings on the income statement: $12,000
Net cash inflow from operating activities: $8,500
Net cash outflow from investing activities: $6,200
Net cash outflow from financing activities: $2,500
What is the best estimate of free cash flows for this year based
on the information above?
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