Monday 11 June 2012

Which of the following would decrease free cash flows? A decrease in:

Which of the following would decrease free cash flows?  A decrease in:
a.depreciation expense.
b.interest expense.
c.incremental sales.
d.both a & c.
e.all of the above.
Free cash flow is the amount of cash that a company has after it has taken into consideration all operating and financing costs. If there is a decrease in sales then the total cash collected by the company would decrease.
 

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