What is the company’s forecasted free cash flow for the year? Data for National Co. is as followS:Product AProduct B2020202120202021Units soldUnit selling priceUnit cost10,00020,00010,00015,000P10P5P15P15P10P7.50P13P8

The free cash flow refers to the cash that will be freely available to the owners of the entity…

Answered: Data for Nationall Co. is as follows:…

Data for Nationall Co. is as follows: Product A 2020 Product B 2020 10,000 P15 P13 2021 2021 Units sold Unit selling price Unit cost 10,000 20,000 P15 P7.50 15,000 P10 P8 P10 P5

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

What is the company’s forecasted free cash flow for the year?

Data for National Co. is as followS:
Product A
Product B
2020
2021
2020
2021
Units sold
Unit selling price
Unit cost
10,000
20,000
10,000
15,000
P10
P5
P15
P15
P10
P7.50
P13
P8

Definition Definition Cash that is left over after a company has paid for its operating and capital expenses. Unlike net income or earnings, free cash flow excludes non-cash expenses of the income statement and includes the expenditures on equipment and assets. Free cash flow also helps potential shareholders to evaluate how quickly the company can pay interest and dividends.

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