Q : Compute free cash flow . Presented belaw are the fnaial statements of vanhoe
ID: 2534045 • Letter: Q
Question
Q : Compute free cash flow .
Presented belaw are the fnaial statements of vanhoe Company Ltd of inancial Positlon S9,903 29,323(23,c60 32,?73 1, 2017 Cost of geods sold Gros profe Additional uta: Deprecietion expense is E13,9c0, Dividends declared and pad were (25,530 Dring the year, equion ert was sold fr ca,750 ??. mis equipment co t E17.190 0rgna?y and had aconulated depreciation of E7.440 at Pd time af sale. 3. Q1 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with eithera - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Show transcribed image text Expert Answer ? Anonymous answered this 5.356 answers Was this answer helpful? Ivan hoe Company Statement of Cashflow For the Cash flows from operating activities Net Income 31960 Increase in Inventony Increase in Accounts Receivable Increase in Accounts Payable Decrease in income tax payable Cash generated from operations 13900 -8450 12900 11960 950 3560 35520 Cash flows from investing activities Equipment sold Net cash used in investing activities 9750 ? 9750 Cash flows from financing activities Bonds Payable redeemed Shares issued Dividends paid Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 25530 28390 16380 19300 36180Explanation / Answer
Free cash flow = cash flow from operating activity - capital expenditure
= 35520 - 0
= 35520
**no capital asset is purchased during the year
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