During 2022, Splish Brothers Inc. reported cash provided by operations of $953000, cash used in investing of $823000, and cash used in financing of $228000. In addition, cash spent on fixed assets during the period was $331000. Average current liabilities were $780000 and average total liabilities were $2059000. No dividends were paid. Based on this information, what was Splish free cash flow?
$130000.
($173000).
($724000).
$622000.
Correct answer is: d. $622000 | |||
Workings: | |||
Computation of Free Cash Flow: | |||
Cash Provided by Operations | = | $ 9,53,000 | |
Less: | Cash used for fixed assets | = | $ 3,31,000 |
Free cash Flow | = | $ 6,22,000 |
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