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Why is free cash flow more relevant in finance than in accounting?
A company has consistently high free cash flow. What does this indicate about its ability to expand operations or pay dividends?
A company has cash from operating activities of \$800,000, capital expenditures of \$200,000, and dividends of \$100,000. What is the impact of capital expenditures and dividends on free cash flow?
How does free cash flow indicate a company's ability to expand operations or pay dividends?
What might negative free cash flow suggest about a company's financial strategy?
A company has negative free cash flow due to heavy investment in fixed assets. What could be a potential future benefit of this strategy?
A company has cash from operating activities of \$500,000, capital expenditures of \$150,000, and dividends of \$50,000. What is the free cash flow?
What could be a reason for a company having negative free cash flow?
A company has a high free cash flow. What does this imply about its financial health?
Calculate the free cash flow for a company with cash from operating activities of \$1,000,000, capital expenditures of \$300,000, and dividends of \$200,000.