Finance Question

Question

Cellular​ Access, Inc., a cellular telephone service​ provider, reported net income of

$242.4 million for the most recent fiscal year. The firm had depreciation expenses of

$104.4 million, capital expenditures of

$202.9 ​million, and no interest expenses. Net working capital increased by

$9.5 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year.

Answer 1

Free Cash Flow = Net Income + Depreciation Expenses - Capital Expenditures - Changes in Working Capital

= $242.4M + $104.4M - $202.9M - $9.5M = $143.3M