Vidyalelo
Commerce · Q527

Financial Management

Graduate and Post Graduate · Commerce · question 527

Q527

Gross fixed asset expenditures is Rs 6000 and free cash flow is Rs 8000 then operating cash flows will be

A.
-Rs 14,000.00
B.
Rs 2,000.00
Answer
C.
Rs 14,000.00
D.
-Rs 2,000.00

Answer: Option B

Solution

Answer: Option B
Solution:
Operating cash flow = Free cash flow - Fixed expenditure
= 8000 - 6000 = Rs. 2000.