question archive What is Free Cash Flow? Calculate the Free Cash Flow of ACI Formulations Ltd
What is Free Cash Flow? Calculate the Free Cash Flow of ACI Formulations Ltd
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What is Free Cash Flow? Calculate the Free Cash Flow of ACI Formulations Ltd. using the information given and the financial statements below: The company had net fixed asset investment and net current asset investment of Tk.153 million and Tk.-188 million respectively, reported depreciation expense of Tk. 5 million and a tax rate of 35%.
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Free Cash Flows:These are the cash flows that company generates after adding up non cash expenses ,any net change in working capitals and deducting the capital expenditure if any incurued
Free Cash flows formula=EBIT(1-TAX)+Non Cash expense+Net Change in working capital-Capex
