Question

During 2017, Sunland Company reported cash provided by operations of $762000, cash used in investing of $659000, and cash used in financing of $182000. In addition, cash spent for fixed assets during the period was $265000. Average current liabilities were $624000 and average total liabilities were $1647000. No dividends were paid. Based on this information, what was Sunland free cash flow?

Answer 1

Answer:

the free cash flow is $497,000

Explanation:

The computation of the free cash flow is shown below:

Free cash flow is

= cash flow from operating activities - capital expenditure

= $762,000 - $265,000

= $497,000

Hence, the free cash flow is $497,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered