Cash Flow

rahuljagetiya
Posts: 4
Joined: Thu Nov 28, 2013 4:45 am

Cash Flow

Postby rahuljagetiya » Thu Nov 28, 2013 4:47 am

Quick InfoTech reports its financial statements as follows:
Net Income: $53 million
Increase in accounts receivable: $ 0.66 million
Increase in accounts payable: $1.3 million
Increase in inventory: $2 million
Amortization: $4.3 million
Depreciation: $ 5.6 million
Purchase of new equipment: $ 5 million
Sold equipment with purchase price $ 15 million and accumulated depreciation of $ 10 million for $ 7 million.
Free cash flow to the firm is closest to:

rahuljagetiya
Posts: 4
Joined: Thu Nov 28, 2013 4:45 am

Cash Flow

Postby rahuljagetiya » Thu Nov 28, 2013 4:51 am

Hello, this question is from mock test i m not confident of answer. Free cash flow formula is NP - investment - working capital + non cash expenses + cash flow from opt
So if we have net investment has + that means we have received rather than paid so its should add back
can any one give final answer


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