a-company-has-cash-from-operating-activities-of-800000-capital-expenditures-of-2

Question

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?

Accepted Answer

They reduce free cash flow by $300,000.

Answer

They reduce free cash flow by $100,000.

Answer

They have no impact on free cash flow.

Answer

They increase free cash flow by $300,000.

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?