If an investor wants to know the amount of cash available with the company for new opportunities,such as expanding into a new sales region,they would most likely look at ________.

Question

Quizplus · Accepted Answer

Free cash flow represents the amount of cash available to a company after deducting capital expenditures from operating cash flows. This number provides insight into how much cash is available for investment opportunities, such as expanding into a new sales region. Net cash flow from investing activities only shows the cash inflows and outflows from investing activities and may not accurately represent the company's overall cash position. Acid ratio is a measure of a company's short-term liquidity, while earnings per share represents the company's profitability and does not directly indicate the amount of cash available.

If an Investor Wants to Know the Amount of Cash