Based on the following, what is free cash flow?​ Cash flows from operations include $2,000 for depreciation. Cash flows from investing include the purchase of a replacement asset for $100,000 and the sale of the one used in production, which is now obsolete, for $70,000. Cash flows from financing include $70,000 of borrowing.

Free Cash Flow

It refers to the amount of cash a company generates after accounting for capital expenditures, such as buildings or equipment. This cash can be used for expansion, dividends, or other purposes.

Cash Flows

The total amount of money being transferred in and out of a business, especially affecting liquidity.

Obsolete

Referring to a product, service, or technology that has become out of date or no longer in use.