kipper995 kipper995

Today at 5:57 PM
Business

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Accounting statements represent a company’s earnings, but this is not the real cash that a company generates. Earnings data can be manipulated and can be deceiving. Thus, corporate decision makers and security analysts focus on the free cash flow that a firm generates to analyze the company’s real cash position. Which of the following statements best describes free cash flow

Answer :

TomShelby TomShelby

Today at 6:01 PM

Answer:

free cash flow

Explanation:

The Free Cash Flow (FCF) determinated the amount available for distribution among all the securities holders. It represent the amount of cash that can be used for dividends without causing troubles for the firm operations.

In comparison with the net income, is important to notice the Free Cash Flow considers the working capital and capital expenditures. While the net income doesn't. Because of that, the FCF is a better measure of the amount available to distribute among shareholders.

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