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Horngren'S Financial And Managerial Accounting
Found in: Page 772

Short Answer

Julie Lopez Company expects the following for 2018:

  1. Net cash provided by operating activities of $148,000.
  2. Net cash provided by financing activities of $56,000.
  3. Net cash used for investing activities of $77,000 (no sales of long-term assets).
  4. Cash dividends paid to stockholders of $7,000.

How much free cash flow does Lopez expect for 2018?

Free cash flow equals $64,000.

See the step by step solution

Step by Step Solution

Step 1- Explanation and Definition

Free cash flow is the excess of available cash generated by operating activities after the settlement planned investments in long-term assets cash dividends.

Step 2- Calculation of Free Cash Flow

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