The following amounts have been taken from the recent financial statements for Junnion Foundation:
Which of the following amounts is the free cash flow for Junnion Foundation?
A) $1,600,000
B) $1,320,000
C) $4,100,000
D) $5,400,000

Question

The following amounts have been taken from the recent financial statements for Junnion Foundation:
 Which of the following amounts is the free cash flow for Junnion Foundation?
A) $1,600,000 
B) $1,320,000 
C) $4,100,000 
D) $5,400,000

Quizplus · Accepted Answer

Free cash flow = Cash flow from operations - Capital expenditures
X = (Cash from operating activities) - (Payment for expenditures on PPE)
X = $8,400,000 - $3,000,000 = $5,400,000

The Following Amounts Have Been Taken from the Recent Financial