Question

Du Pont had cash flow from operations of $5,070, cash flows from investments of $(1,244), cash flows from financing of $(3,537), and net income of $2,314. Du Pont s free cash flow is: a. $2,756 b. $1,533 c. $289 d. $3,826

Answer 1

the answer is d. $3,826

Answer 2

$3,826

Step-by-step explanation:

Free cash flow is defines as the cash flow from a business that is avaible to security holders of the corporation. It is the cash that remains after a business finds its operations and capital assets.

Free cash flow can be used instead of earnings nper share to determine the profitability of a business, an advantage is that it remove non cash items from income statement.

Free cash flow= Cash flow from operations- cash flow from investing activity ( capital expenditure)

Free cash flow= 5,070- 1,244= $3,826