Final answer:
Thing Company's Free Cash Flow is calculated by subtracting capital expenditures and dividends from its net cash provided by operating activities, resulting in a Free Cash Flow of $74,338.
Step-by-step explanation:
The question asks us to calculate Thing Company's Free Cash Flow (FCF), which is a measure of a company's financial performance that shows how much cash is available for the company to repay creditors or pay dividends and interest to investors. To calculate FCF, we subtract the firm's capital expenditures and dividends from the net cash provided by operating activities. Using the provided information, we calculate FCF as follows:
Net Cash provided by operating activities = $238,104
Capital Expenditures = $110,341
Dividends = $53,425
We then apply the formula:
Free Cash Flow = Net Cash provided by operating activities - Capital Expenditures - Dividends
Free Cash Flow = $238,104 - $110,341 - $53,425
Free Cash Flow = $74,338
Therefore, the Free Cash Flow for Thing Company is $74,338.