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Based on the Following,what Is Free Cash Flow Cash Flows from Operations Include $2,000 for Depreciation

Question 153

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Based on the following,what is free cash flow?
 Net cash flow from operating activities$318,000 Net cash flow used for investing activities30,000 Net cash flow from financing activities30,000\begin{array}{lccc} \text { Net cash flow from operating activities}&\$ 318,000 \\ \text { Net cash flow used for investing activities}&30,000\\ \text { Net cash flow from financing activities}& 30,000\\\end{array}
Cash flows from operations include $2,000 for depreciation.Cash flows from investing include the purchase of a replacement asset for $100,000 and the sale of the one used in production,which is now obsolete,for $70,000.Cash flows from financing include $70,000 of borrowing.

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$318,000 -...

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