For the year just ending, Elena Electronics Inc. had sales revenue equal to $950,000, cost of goods sold $399,000, selling expenses $191,000, distribution expenses of $70,000, administration expenses of $62,000, depreciation expense $18,000, interest charges $44,000 and taxes at $57,000. During that year there was an increase in accounts receivable of $10,000 and no capital asset were purchased. What was the free cash flow generated for the year?

Question

Quizplus · Accepted Answer

Free cash flow = Net income + Depreciation - Increase in accounts receivable= (950,000 - 399,000 - 191,000 - 70,000 - 62,000 - 44,000 - 57,000) + 18,000 - 10,000= $117,000

For the Year Just Ending, Elena Electronics Inc