For the year ending December 31,2017,Rodgers Electric expects net cash provided by operations of $327,000,net cash used by investing activities of $135,000,and net cash provided by financing activities of $49,000.Rodgers plans to spend $254,000 to add a warehouse for its operations and pays $32,000 in cash dividends.What is the amount of free cash flow?

Question

Quizplus · Accepted Answer

B)Free cash flow = Net cash provided by operating activities - Cash payments planned for investments in long-term assets - Cash dividends
Free cash flow = $327,000 - $254,000 - $32,000
Free cash flow = $41,000

For the Year Ending December 31,2017,Rodgers Electric Expects Net Cash