Explore BrainMass

Explore BrainMass

    Free-Cash Flow

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com March 4, 2021, 5:52 pm ad1c9bdddf
    https://brainmass.com/business/statement-of-cash-flows/free-cash-flow-15011

    Solution Preview

    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 ...

    $2.49

    ADVERTISEMENT