Question

Assume that during 2017, Cypress Semiconductor Corporation reported net cash provided by operating activities of $155,793,000, net cash used in investing activities of $207,826,000 (including cash spent for plant assets of $132,280,000), and net cash used in financing activities of $33,372,000. Dividends of $5,000,000 were paid. Calculate the free cash flow.

Answer 1

Free cash flow will be equal to $18513000

Step-by-step explanation:

We have given cash provided for operating activities = $155793000

Capital expenditure = $132280000

Dividend paid = $5000000

We have to find the free cash flow

We know that free cash flow is given by

Free cash flow = cash provided for operating activities - capital expenditure - dividend paid = $155793000-$132280000-$5000000 = $18513000