Question

Swifty Pest Control Products has the following information available:

Net Income $25100
Cash Provided by Operations 32500
Cash Sales 64600
Capital Expenditures 9600
Dividends Paid 2200
What is Swifty’ free cash flow?

Answer 1

$20,700

Step-by-step explanation:

Data provided in the question:

Net Income = $25,100

Cash Provided by Operations = $32,500

Cash Sales = $64,600

Capital Expenditures = $9,600

Dividends Paid = $2,200

Now,

Swifty’ Free cash flow

= Cash Provided by Operations - Capital Expenditures - Dividends Paid

Thus,

Swifty’ Free cash flow = $32,500 - $9,600 - $2,200

or

Swifty’ Free cash flow = $20,700