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What was Atchley Corporation's last free cash flow?

1) 1.55 million
2) 1.5 million
3) 1.6 million
4) 1.7 million

User Rkulla
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1 Answer

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Final answer:

Atchley Corporation's last free cash flow cannot be provided without specific financial details. However, an example shows that the accounting profit for a firm with $1 million in sales and various expenses is $50,000.

Step-by-step explanation:

To determine Atchley Corporation's last free cash flow, we would require additional specific financial information pertaining to Atchley Corporation's operations, such as its operating cash flow, capital expenditures, and any possible changes in working capital. However, it is not possible to calculate or provide Atchley Corporation's last free cash flow without these precise details. Instead, I can demonstrate how to calculate a firm's accounting profit with the given example.

A firm had sales revenue of $1 million last year. It incurred expenses including $600,000 on labor, $150,000 on capital, and $200,000 on materials. Accounting profit is calculated by subtracting the total expenses from the sales revenue. So, the firm's accounting profit would be calculated as follows:

Sales Revenue - (Labor Costs + Capital Costs + Material Costs) = Accounting Profit

$1,000,000 - ($600,000 + $150,000 + $200,000) = $50,000

Therefore, the firm's accounting profit is $50,000.

User Harshit Satya
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