Terastar Corp. reports the following amounts for 2012 and 2013: $$\begin{array} { | c | c | c | c | c | }
\hline & \begin{array} { c }
\text { Net } \
\text { Income }
\end{array} & \begin{array} { c }
\text { Operating } \
\text { Cash Flows }
\end{array} & \begin{array} { c }
\text { Investing } \
\text { Cash Flows }
\end{array} & \begin{array} { c }
\text { Financing } \
\text { Cash Flows }
\end{array} \
\hline 2012 & \$ 10,000 & \$ 15,000 & - \$ 8,000 & \$ 10,000 \
\hline 2013 & 12,000 & 19,000 & - \$ 10,000 & - 6,000 \
\hline
\end{array}$$ What is the amount of Terastar's free cash flows for 2013?

Question

Terastar Corp. reports the following amounts for 2012 and 2013: $$\begin{array} { | c | c | c | c | c | } 
\hline & \begin{array} { c } 
\text { Net } \
\text { Income }
\end{array} & \begin{array} { c } 
\text { Operating } \
\text { Cash Flows }
\end{array} & \begin{array} { c } 
\text { Investing } \
\text { Cash Flows }
\end{array} & \begin{array} { c } 
\text { Financing } \
\text { Cash Flows }
\end{array} \
\hline 2012 & \$ 10,000 & \$ 15,000 & - \$ 8,000 & \$ 10,000 \
\hline 2013 & 12,000 & 19,000 & - \$ 10,000 & - 6,000 \
\hline
\end{array}$$ What is the amount of Terastar's free cash flows for 2013?

Quizplus · Accepted Answer

Free cash flow is calculated as operating cash flows minus capital expenditures (investing cash flows). For 2013, it is $19,000 (operating cash flows) - $10,000 (investing cash flows) = $9,000.

Terastar Corp What Is the Amount of Terastar's Free Cash Flows for \begin{array}