Question

During 2022, Pharoah Company reported cash provided by operations of $985000, cash used in investing of $851000, and cash used in financing of $236000. In addition, cash spent on fixed assets during the period was $342000. Average current liabilities were $806000 and average total liabilities were $2128000. No dividends were paid. Based on this information, what was Pharoah free cash flow

Answer 1

$643,000

Step-by-step explanation:

Calculation for Pharoah free cash flow

Using this formula

Free Cash flow =Cash provided by operations -Cash spent on fixed assets

Let plug in the formula

Free cash flow=$985000-$342000

Free cash flow=$643,000

Therefore Pharoah free cash flow will be $643,000