Net cash provided (used) by operating activities − net cash used in acquiring property, plant is the calculation for
A) Free cash flow
B) Cash flow from investing activities
C) Working capital
D) Current ratio

Question

Quizplus · Accepted Answer

The formula given is for calculating Free Cash Flow, which is the cash flow available for a company to reinvest in its business, pay dividends or reduce debt. It represents the amount of cash generated by a company's operations after deducting capital expenditures which is shown in net cash used in acquiring property, plant.

Net Cash Provided (Used) by Operating Activities − Net Cash