Question

Marigold’s Pest Control Products has the following information available: net income, $15800; cash provided by operations, $21700; cash sales, $65200; capital expenditures, $10100; and dividends paid, $3500. What is Marigold’s free cash flow?

Answer 1

The Maigold's free cash flow can be calculated using the below formula:

Cash Provided by Operations-Capital expenditure-Dividends paid

Step-by-step explanation:

Cash provided by operations $21700

Capital expenditure ($10100)

Dividends paid ($3500)

Free cash flow of Maigold's $8100