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June 2012 Metis – Free Cash Flows

This topic has 3 replies, 2 voices, and was last updated 8 years ago by Ken Garrett.

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June 3, 2017 at 11:11 am #389898
lorraine1973
Member
- Topics: 5
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I’m struggling to work out how the model answer has got the free cash flow for 2010 as $141840.
Can you explain the calculation?
June 4, 2017 at 4:45 am #390076
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10648
31200 – 9360 + 120000 = 140840. Depreciation is not a cash flow.
June 4, 2017 at 10:16 am #390136
lorraine1973
Member
- Topics: 5
- Replies: 8
Thank you, I got there in the end, I realised I had added tax instead of deducting it.
June 4, 2017 at 10:37 am #390144
Ken Garrett
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- Topics: 10
- Replies: 10648
No problems.
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