Johnson's Nursery has net income of $42,500,depreciation expense of $1,800,interest expense of $900,taxes of $1,600,additions to net working capital of $2,300,and capital expenditures of $11,700.What is the amount of the free cash flow?
A) $30,300
B) $34,400
C) $31,200
D) $28,700

Question

Quizplus · Accepted Answer

Free cash flow = $42,500 + 900 + 1,800 − 2,300 − 11,700 = $31,200

Johnson's Nursery Has Net Income of $42,500,depreciation Expense of $1,800,interest