Question

During 2020, Harvey Industries reported cash provided by operations of $670,000, cash used in investing of $1,039,000, and cash used in financing of $145,000. In addition, cash spent for fixed assets during the period was $404,000. No dividends were paid. Based on this information, what was Harvey's free cash flow?

Answer 1

$266,000

Step-by-step explanation:

The formula to compute the free cash flow is shown below:

Free Cash flow = Operating cash flow - capital expenditure

= $670,000 - $404,000

= $266,000

The operating cash flow is come from cash provided by operations and capital expenditure is the cash spent for fixed assets

All other information which is given is not relevant. Hence, ignored it