Register now or log in to join your professional community.
<p>a. Balance Sheet</p> <p>b. Income Statement</p> <p>c. Cash Flow Statement.</p> <p>d. Statement of Changes in Equity.</p> <p>e. Notes to the Financial Statements.</p>
It's Option "C" Cash Flow Statement
Free cash flow (FCF) is a measure of how much cash a business generates after accounting forcapital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing debt, or other purposes.
The formula for free cash flow is:
FCF = Operating Cash Flow - Capital Expenditures
The data needed to calculate a company's free cash flow is usually on its cash flow statement. For example, if Company XYZ's cash flow statement reported $15 million of cash from operations and $5 million of capital expenditures for the year, then Company XYZ's free cash flow was $15 million - $5 million = $10 million.
Option C Cash Flow Statement
FCF is calculated as:
EBIT(1-Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - Capital Expenditure
The best Answer added by: Kamran Anjum Head of Internal Audit 2 years ago
