Pease help!! I have all of this right but I can not figure out the last part. I

Question

Pease help!! I have all of this right but I can not figure out the last part. I have one attempt left. Please explain the solution. Thank you

The following are the financial statements of Nosker Company NOSKER COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment 2017 2016 $34,450 $20,700 18,100 20,250 77,650 (29,000) (23,250) $124,050 $113,450 32,650 26,400 59,550 Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,600 $16,150 8,500 33,600 13,050 42,150 $124,050 $113,450 7,350 27,800 19,000 41,300

Explanation / Answer

Free cash flow is a cash that company produces through its operations less the expenditure incurred on purchase of capital asset.

Hence the formula for calculation of free cash flow is

Net cash flow from operating activities less Capital expenditure

In the given case there is no capital expenditure

Therefore net cash flow from operating activities itself is the free cash flow.

Therefore free cash flow is $35600/-

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