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During 2014,the Operations of a Shipping Company Provided Net Cash $650,000 \$ 650,000

Question 161

Essay

During 2014,the operations of a shipping company provided net cash flows of $600,000.The company made capital expenditures of $270,000 and paid dividends of $130,000.
A) Compute the company's free cash flow.
B) Compute the company's cash flow adequacy ratio assuming the average maturity value of its long term debt over the next five ye ars is $650,000 \$ 650,000 .

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