During the current year, the operations of a shipping company provided net cash flows of $600,000. The company made capital expenditures of $270,000 and paid dividends of $130,000.
A)Compute the company's free cash flow.
B)Compute the company's cash flow adequacy ratio assuming the average maturity value of its long-term debt over the next 5 years is $650,000.

Question

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The Answer of During the current year, the operations of a shipping company provided net cash flows of $600,000. The company made capital expenditures of $270,000 and paid dividends of $130,000.
A)Compute the company's free cash flow.
B)Compute the company's cash flow adequacy ratio assuming the average maturity value of its long-term debt over the next 5 years is $650,000.

During the Current Year, the Operations of a Shipping Company