Some users in the markets prefer to use free cash flows as a performance measure instead of earnings. For this year, JJ company has 10,000 net earnings on income statement and 7,000 net cash inflow from operating activities, 5,000 net cash outflow from investing activities, and 2,000 cash outflow from financing activities on the statement of cash flows. What is the best estimate of free cash flows for this year based on the information above? a. 15,000 b. 3,000 c. 5,000 d. 2,000

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
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Some users in the markets prefer to use free cash flows as a performance
measure instead of earnings. For this year, JJ company has 10,000 net
earnings on income statement and 7,000 net cash inflow from operating
activities, 5,000 net cash outflow from investing activities, and 2,000 cash
outflow from financing activities on the statement of cash flows.
What is the best estimate of free cash flows for this year based on the
information above?
a. 15,000
b. 3,000
c. 5,000
d. 2,000
Transcribed Image Text:Some users in the markets prefer to use free cash flows as a performance measure instead of earnings. For this year, JJ company has 10,000 net earnings on income statement and 7,000 net cash inflow from operating activities, 5,000 net cash outflow from investing activities, and 2,000 cash outflow from financing activities on the statement of cash flows. What is the best estimate of free cash flows for this year based on the information above? a. 15,000 b. 3,000 c. 5,000 d. 2,000
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