During the year, Xero, Inc., experienced an increase in net fixed assets of $ 300 comma 000 and had depreciation of $ 204 comm

Question

4 years ago

11

During the year, Xero, Inc., experienced an increase in net fixed assets of $ 300 comma 000 and had depreciation of $ 204 comm

a 000. It also experienced an increase in current assets of $ 146 comma 000 and an increase in accounts payable of $ 73 comma 000. If operating cash flow (OCF) for the year was $ 697 comma 000, calculate the firm's free cash flow (FCF) for the year.

Business

1 answer:

ElenaW [278] · Answer 1 · 2022-01-30T09:09:47+03:00

Answer:

$120,000

Explanation:

NFAI = Change in net fixed assets + Depreciation

= $300,000 + $204,000

= $504,000

NCAI = Change in current assets - Change in accounts payable

= $146,000 - $73,000

= $73,000

OCF = $697,000

FCF = OCF - NFAI - NCAI

= $697,000 - $504,000 - $73,000

= $120,000

During the​ year, Xero,​ Inc., experienced an increase in net fixed assets of $ 300 comma 000 and had depreciation of $ 204 comm

During the year, Xero, Inc., experienced an increase in net fixed assets of $ 300 comma 000 and had depreciation of $ 204 comm