Question

During 2020, Bramble Industries reported cash provided by operating activities of $669800, cash used in investing of $1038100, and cash used in financing of $144900. Cash used in investing activities includes cash spent for fixed assets during the period of $404800. No dividends were paid. Based on this information, what was Bramble's free cash flow?

A $265000

B $1448000

C ($368300)

D ($918000)

Answer 1

The free cash flow for Bramble Industries is calculated by subtracting capital expenditures from the cash provided by operating activities, which results in a free cash flow of A. $265,000.

Step-by-step explanation:

To calculate the free cash flow (FCF) for Bramble Industries, we need to start with the cash provided by operating activities. The FCF is typically the cash from operating activities minus any capital expenditures. From the information given, Bramble Industries reported cash provided by operating activities of $669,800, and we know that cash spent for fixed assets, which represents the capital expenditures, is $404,800. Therefore, the FCF can be calculated as follows:

FCF = Cash Provided by Operating Activities - Capital Expenditures

FCF = $669,800 - $404,800

FCF = $265,000

Thus, the free cash flow for Bramble Industries would be $265,000, which corresponds to option A.