Vidyalelo
Commerce · Q938

Financial Management

Graduate and Post Graduate · Commerce · question 938

Q938

Sales revenue Rs 90,000, operating taxes Rs 30,000 and operating capital Rs 15,000 then value of free cash flows will be

A.
Rs 45,000.00
Answer
B.
Rs 13,500.00
C.
Rs 65,000.00
D.
Rs 75,000.00

Answer: Option A

Solution

Answer: Option A
Solution:
Free cash flow = Sales revenue - Operating taxes - Operating capital
= Rs. 90000 - Rs. 30000 - Rs. 15000 = Rs. 45000.