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Swifty Pest Control Products has the following information available:
Net Income $25100
Cash Provided by Operations 32500
Cash Sales 64600
Capital Expenditures 9600
Dividends Paid 2200
What is Swifty’ free cash flow?

Respuesta :

Answer:

$20,700

Explanation:

Data provided in the question:

Net Income = $25,100

Cash Provided by Operations = $32,500

Cash Sales = $64,600

Capital Expenditures = $9,600

Dividends Paid = $2,200

Now,

Swifty’ Free cash flow

= Cash Provided by Operations - Capital Expenditures - Dividends Paid

Thus,

Swifty’ Free cash flow  = $32,500  - $9,600  - $2,200

or

Swifty’ Free cash flow  = $20,700