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Management · Q531

Financial Management

Graduate and Post Graduate · Management · question 531

Q531

An operating cash flows is Rs 12000 and gross fixed asset expenditure is Rs 5000 then free cash flow will be

A.
-Rs 7,000.00
B.
Rs 7,000.00
Answer
C.
Rs 17,000.00
D.
-Rs 17,000.00

Answer: Option B

Solution

Answer: Option B
Solution:
Free cash flow = Operating cash flow - Fixed expenditure
= 12000 - 5000 = Rs. 7000.