Question

determine free cash flow if net cash provided by operating activities was $472,000, capital expenditures were $39,000, land was sold for $65,000, and cash dividends of $15,000 were paid.

Answer 1

The free cash flow amount is $483,000.

What is free cash flow?

Free cash flow is described as a means to assess the financial performance of a company. It gives a measure of the cash that can be generated by a company after investments, purchase of equipment, and property is deducted from the main operating cash flow. It can also be highlighted that free cash flow is also a measure of profitability.

Given that,

Net cash provided by operating activities  = $472,000

Land sold for = $65,000

Capital expenditure = $39,000

Cash dividends = $15,000

According to the formula,

Free cash flow = Net cash provided by operating activities + cash gained from the selling off the land) - capital expenditure - cash dividends = (472,000+ 65,000) - 39,000 - 15,000 = 537,000 - 39,000 - 15,000 = $483,000

It can be concluded that the free cash flow amount is $483,000.

To know more about, free cash flow, check this link:

https://brainly.com/question/15848997

#SPJ4