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kipiarov [429]
3 years ago
9

Net income for the year for Tanizaki, Inc. was $750,000, but the statement of cash flows reports that net cash provided by opera

ting activities was $860,000. Tanizaki also reported capital expenditures of $75,000 and paid dividends in the amount of $30,000. Compute Tanizaki's free cash flow.
Business
1 answer:
Arturiano [62]3 years ago
5 0

Answer: $755,000

Explanation:

Given that,

Net income = $750,000

Net cash by operating activities = $860,000

Capital expenditures = $75,000

Paid dividends = $30,000

Tanizaki's free cash flow = Net cash by operating activities - Capital expenditures - Paid dividends

                                         = $860,000 - $75,000 - $30,000

                                         = $755,000

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