Which of the following would decrease free cash flows? A decrease in: - 4559

Solution Posted by
UoPExpert

UoPExpert

Rating : (2)F
Solution Detail
Price: $1.30
  • From: ,
  • Posted on: Wed 28 Mar, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

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. 

 
Solution Description

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

         a.   depreciation expense.