The operating cash flow available for company use after purchasing the fixed assets that are necessary to maintain current productive capacity is called the
A) free cash flow
B) modified cash flow
C) PPE cash flow
D) restricted cash flow

Question

Quizplus · Accepted Answer

Free cash flow is the cash flow available for company use after necessary investments in fixed assets have been made to maintain current productive capacity. It can be used for such things as paying dividends, buying back stock, or investing in growth opportunities. Modified cash flow, PPE cash flow, and restricted cash flow are not commonly used or recognized terms in financial analysis.

The Operating Cash Flow Available for Company Use After Purchasing