Dukas Corporation's net cash provided by operating activities $218,000; its net income was $203,000; its capital expenditures were $146,000 and its cash dividends were $49,000. What is the company's free cash flow?
To calculate the company's free cash flow, we start with the net cash provided by operating activities and make adjustments for capital expenditures and cash dividends.
Free Cash Flow = Net Cash Provided by Operating Activities - Capital Expenditures - Cash Dividends
Given the following information:
Net Cash Provided by Operating Activities = $218,000
Capital Expenditures = $146,000
Cash Dividends = $49,000
Let's plug these values into the formula to calculate the company's free cash flow:
Free Cash Flow = $218,000 - $146,000 - $49,000
Free Cash Flow = $23,000
Therefore, the company's free cash flow is $23,000.