Question

Whispering Winds Corporation reported net cash provided by operating activities of $364,900, net cash used by investing activities of $154,300, and net cash provided by financing activities of $75,400. In addition, cash spent for capital assets during the period was $202,500. No dividends were paid.

Calculate free cash flow.

Answer 1

Explanation:

Free cash flow is a measure of the cash that a company generates from its operations after accounting for capital expenditures required to maintain or expand its asset base. It is calculated as:

Free cash flow = Cash from operating activities - Capital expenditures

From the information given, we can calculate the free cash flow for Whispering Winds Corporation as:

Free cash flow = $364,900 - $202,500

Free cash flow = $162,400

Therefore, the free cash flow for Whispering Winds Corporation is $162,400.