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Blackstone Company has the following information available: Net income, $20,000; Cash provided by operating activities, $30,000; Cash sales, $75,000; Capital expenditures, $12,000; and Cash dividends, $6,000. What is Blackstone’s free cash flow?

1 Answer

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Answer:

Free cash flow = $12,000

Step-by-step explanation:

given data

Net income = $20,000

Cash provided by operating activities = $30,000

Cash sales = $75,000

Capital expenditures = $12,000

Cash dividends = $6,000

to find out

What is Blackstone’s free cash flow

solution

we get here Free cash flow that is express as

Free cash flow = Cash provided by operating activities - Capital expenditures - Cash dividends ........................1

put here value

Free cash flow = $30,000 - $12,000 - $6,000

Free cash flow = $12,000

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