Packard Corporation reports the following information: Packard's free cash flow is
A) $100,000.
B) $115,000.
C) $175,000.
D) $225,000.

Question

Packard Corporation reports the following information:  Packard's free cash flow is
A) $100,000. 
B) $115,000. 
C) $175,000. 
D) $225,000.

Quizplus · Accepted Answer

To calculate free cash flow, we need to subtract capital expenditures from operating cash flow. Operating cash flow is given as $300,000 and capital expenditures are given as $185,000. Therefore, free cash flow = $300,000 - $185,000 = $115,000, which is option B.

Packard Corporation Reports the Following Information: Packard's Free Cash