Asked by Elijah Filsinger on May 18, 2024

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Hogan Enterprises reported cash flow from operations of $275000. The company made capital expenditures of $110000 and paid dividends of $35000.
Instructions
Compute free cash flow.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain capital assets. It's an important measure of financial health.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve long-term operations.

  • Calculate free cash flow.
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Lucas MatlalaMay 18, 2024
Final Answer :
Free cash flow = $275000 - $110000 - $35000 = $130000