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Hogan Enterprises reported cash flow from operations of $275,000. The company made capital expenditures of $110,000 and paid dividends of $35,000. Compute free cash flow.

Respuesta :

Answer:

$130,000

Explanation:

The computation of the free cash flow is shown below:

Free cash flow = Cash flow from operations - capital expenditure - cash dividend paid  

= $275,000 - $110,000 - $35,000

= $130,000

Simply we deduct the dividend, and the capital expenditure from the cash flow from operations so that the free cash flow could come

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