Question

During 2022, Windsor, Inc. reported cash provided by operations of $683000, cash used in investing of $590000, and cash used in financing of $163000. In addition, cash spent on fixed assets during the period was $237000. Average current liabilities were $559000 and average total liabilities were $1476000. No dividends were paid. Based on this information, what was Windsor free cash flow?

Answer 1

the free cash flow is $446,000

Step-by-step explanation:

The computation of the free cash flow is shown below:

Free cash flow is

= Cash flow from operating activities - capital expenditures

= $683,000 - $237,000

= $446,000

hence, the free cash flow is $446,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered