One way to think about free cash flow is that if the amount were withdrawn, it would harm the firm's ability to operate and to produce future cash flows.

a. true
b. false

Answers

The answer may be c ..

tell me the question and i will be able to answer : )

The given statement "One way to think about free cash flow is that if the amount were withdrawn, it would harm the firm's ability to operate and to produce future cash flows" is FALSE.

Explanation:

Free flow of cash is the cash produced by an enterprise, less than the cost of asset spending. Free cash flow is the remaining cash after a corporation pays the operating costs and the equity, also called CAPEX.

FCF conflates net income through adjustments to non-cash spending, working capital shifts and capital expenditure.

The FCF is prone to volatility rather than net income as an indicator of profitability.

Nonetheless, FCF can expose basic problems until they emerge from the income declaration as a additional tool for analysis.



Do you know the answer?

Other questions on the subject: Business

Business, 21.06.2019, lovelysoul4698
Answer : 4.34 %Explanation: The effective interest rate a company pays on its debt obligation is called cost of debt. The cost of debt is denoted by [k]x_{d}[/tex] . As there is a...Read More
3 more answers
Business, 22.06.2019, kale2158
Answernafta/// (true) it allows a member country to reimpose tariffs if imports are hurting that country's economy or its workers;...Read More
1 more answers
Business, 22.06.2019, whitakers87
The correct answer is  "b)  net income overstated, assets unaffected, liabilities understated, and owner's equity overstated."...Read More
2 more answers