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Free-Cash Flow

TA 101733 Please: You helped me with posting 15008. This is an additional question.

Based on the information provided, what is the company's Free-Cash Flow?

Also, could you just please clarify for me on the previous problem, why you would add a net of $100 to cash flow (change in working capital) when the difference in assets and liabilities decreased from (700-500=200) to (900-800=100) (instead of subtracting the $100 decrease in net working capital from cash flow)? Thank you

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Free cash flow is a measure of how much cash a company has after paying its bills for ongoing activities and growth. It is calculated by adding depreciation to net income and then subtracting capital expenditures.
<br>Therefore, in this case,
<br>Free ...