Vidyalelo
Management · Q970

Financial Management

Graduate and Post Graduate · Management · question 970

Q970

Formula Sales revenue minus operating cost and taxes minus operating capital investments is used to calculate

A.
available income
B.
cash income
C.
free cash flows
Answer
D.
free distribution

Answer: Option C

Solution

Answer: Option C
Solution:
Formula Sales revenue minus operating cost and taxes minus operating capital investments is used to calculate free cash flows. Free cash flow is the cash a company produces through its operations, less the cost of expenditures on assets.