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The amount of cash that remains after deducting the funds a company must commit to continue operating at its planned level is called:

User JialeDu
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Answer:

free cash flows

Step-by-step explanation:

In order to calculate a company's free cash flow, we can use the following formula:

free cash flow = net income + non-cash expenses (depreciation and amortization) - increase in net working capital - capital expenditures (investing activities)

free cash flows differ from net income, but they are generally more relevant for financial analysis since cash is king an no company can survive without cash even if its profits are huge.

User Justin Moore
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