Question

Assume that during 2019, Cypress Semiconductor Corporation reported net cash provided by operating activities of $155,040,000, net cash used in investing activities of $207,125,000 (including cash spent for plant assets of $132,415,000), and net cash used in financing activities of $33,300,000. Dividends of $4,630,000 were paid. Calculate free cash flow. (Enter a negative amount using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)

Answer 1

Free cash flow = $17,995,000

Step-by-step explanation:

Given :

Cash provided by operating activities = $155,040,000

Net cash used in investing activities = $207,125,000 (including cash spent for plant assets of $132,415,000),

Net cash used in financing activities = $33,300,000

Dividends = $4,630,000

To find the free cash flow, we use:

Cash provided by operating activities - capital expenditures(cash spent for plant assets) - dividends.

Free cash flow = $155,040,000 - $132,415,000 - $4,630,000

= $17,995,000