FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Chapter 13, Problem 13.15BE
To determine

Free cash flow:  Free cash flow determines to know the extent of how company survives in a longer time period.  Free cash flow is determined by deducting net cash provided by operating activities and capital expenditures and cash dividends.

Formula:

Free cash flow =  (Net cash provided by operating activities – Capital expenditures – Cash dividends)

To compute: Free cash flow

Given info: Items from financial statements

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