In its most recent fiscal year, Boba Tea Corp reported net income of $300,000,000. Looking at its financialstatements, we observe that the firm reported depreciation expenses of $125,000,000 and capital expenditures of$150,000,000. The firm had no debt but did experience an increase in NWC of $20,000,000. What is Boba Tea'sfree cash flow?Select one:O a. $170 millionb. $255 millionc. $150 milliond. $5 millionClear my choice-

In this problem we simply have to use the formula to calculate the FCF ( Free cash flow ). The…

In its most recent fiscal year, Boba Tea Corp reported net income of $300,000,000. Looking at its financial statements, we observe that the firm reported depreciation expenses of $125,000,000 and capital expenditures $150,000,000. The firm had no debt but did experience an increase in NWC of $20,000,000. What is Boba Tea's free cash flow? Select one: O a. $170 million b. $255 million c. $150 million d. $5 million

In its most recent fiscal year, Boba Tea Corp reported net income of $300,000,000. Looking at its financial statements, we observe that the firm reported depreciation expenses of $125,000,000 and capital expenditures $150,000,000. The firm had no debt but did experience an increase in NWC of $20,000,000. What is Boba Tea's free cash flow? Select one: O a. $170 million b. $255 million c. $150 million d. $5 million

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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