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Marin Corporation engaged in the following cash transactions during 2020. Sale of land and building $187,700...

Marin Corporation engaged in the following cash transactions during 2020.

Sale of land and building $187,700
Purchase of treasury stock 44,000
Purchase of land 41,800
Payment of cash dividend 87,400
Purchase of equipment 60,500
Issuance of common stock 156,700
Retirement of bonds 108,500


Determine Marin’s free cash flow, assuming that it reported net cash provided by operating activities of $402,770.

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Answer #1

Answer---------

Free Cash flow= $             317,370

Alternate answer----------$229,970

Working

Free Cash flow= (Cash from Operating Activities-Cash Used in Investing Activities)
Free Cash flow= (402770-85400)
Free Cash flow= $             317,370

.


Sale of land and building		 $      187,700
Purchase of land $      (41,800)
Purchase of equipment $      (60,500)
Net cash flow from Investing activities. $        85,400

.

Alternate answer working

Free Cash flow= (Cash from Operating Activities-Cash Used in Investing Activities-Dividend paid)
Free Cash flow= (402770-85400)-87400
Free Cash flow= $             229,970
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