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alana fields
on Dec 16, 2024

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Free cash flow equals cash provided by

A) operations less capital expenditures and cash dividends.
B) operations less cash dividends.
C) investing activities less capital expenditures and cash dividends.
D) operations less capital expenditures.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Free Cash Flow

The cash that a business produces after deducting cash outflows needed for operational activities and the upkeep of its fixed assets.

Cash Dividends

Distributions of earnings paid to shareholders in the form of cash.

  • Recognize the importance of free cash flow and its computation.
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AC
ashlyn cowieDec 23, 2024
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