Plotz Corporations’s net cash provided by operating activities was 59,000 its ne
ID: 2710731 • Letter: P
Question
Plotz Corporations’s net cash provided by operating activities was 59,000 its net income was 67,000 its income taxes were 29,000 its capital expenditures were 44000 and its cash dividends were 13000.
The book says Free cash flow = Net cash provided by operating activities - capital expenditures - Dividends
Am I doing this correctly or am I supposed to be adding in net income and income taxes?
Free cash flow computation:
Net cash provided by operating activities............................................
$ 59,000
Capital expenditures...........................
$44,000
Dividends..........................................
13,000
57,000
Free cash flow......................................
$2,000
Free cash flow computation:
Net cash provided by operating activities............................................
$ 59,000
Capital expenditures...........................
$44,000
Dividends..........................................
13,000
57,000
Free cash flow......................................
$2,000
Explanation / Answer
NET FREE CASH FLOW = + 59,000 + 67,000 + 29,000 - 44,000 - 13,000 = 98,000 $