Question
Cooper Prendergast Company expects the following for 2024:
Net cash provided by operating activities of $ 140,000.
Net cash provided by financing activities of $ 60,000.
Net cash used for investing activities of $ 86000 (no sales of long-term assets).
Cash dividends paid to stockholders of $ 11,000.
How much free cash flow does Prendergast expect for 2024?
Select the labels and enter the amounts to calculate the expected free cash flow for 2024. (Abbreviations used: Cash pmts for planned invest. = Cash payments for planned investments; NCOA = Net cash provided by operating activities; NCFA = Net cash provided by financing activities.)
[?] - [?] - [?] = free cash flow
[?] - [?] - [?] = [?]
Net cash provided by operating activities of $ 140,000.
Net cash provided by financing activities of $ 60,000.
Net cash used for investing activities of $ 86000 (no sales of long-term assets).
Cash dividends paid to stockholders of $ 11,000.
How much free cash flow does Prendergast expect for 2024?
Select the labels and enter the amounts to calculate the expected free cash flow for 2024. (Abbreviations used: Cash pmts for planned invest. = Cash payments for planned investments; NCOA = Net cash provided by operating activities; NCFA = Net cash provided by financing activities.)
[?] - [?] - [?] = free cash flow
[?] - [?] - [?] = [?]
Answers
GPT-4o mini
To calculate the expected free cash flow for Cooper Prendergast Company for 2024, we can use the following formula:
**Free Cash Flow = Net Cash Provided by Operating Activities - Cash Payments for Planned Investments - Cash Dividends Paid**
Let's plug in the values based on the information provided:
1. **Net Cash Provided by Operating Activities (NCOA)**: $140,000
2. **Cash Payments for Planned Investments**: Since there are no sales of long-term assets and $86,000 is used for investing activities, we can assume that this is the cash payments for planned investments. Thus, it will be $86,000.
3. **Cash Dividends Paid**: $11,000
Now let’s put the values into the calculation for free cash flow:
\[ \text{Free Cash Flow} = 140,000 - 86,000 - 11,000 \]
Calculating this:
\[
\text{Free Cash Flow} = 140,000 - 86,000 - 11,000
\]
\[
\text{Free Cash Flow} = 140,000 - 97,000
\]
\[
\text{Free Cash Flow} = 43,000
\]
So, expected free cash flow for 2024 is $43,000.
Now to fill in the labels and amounts:
**Expected free cash flow calculation:**
\[
NCOA - \text{(Cash pmts for planned invest.)} - \text{(Cash Dividends Paid)} = \text{Free Cash Flow}
\]
\[
140,000 - 86,000 - 11,000 = 43,000
\]
To summarize:
- **NCOA** = 140,000
- **Cash pmts for planned invest.** = 86,000
- **Cash Dividends Paid** = 11,000
- **Free Cash Flow** = 43,000
Answer:
\[ 140,000 - 86,000 - 11,000 = 43,000 \]
**Free Cash Flow = Net Cash Provided by Operating Activities - Cash Payments for Planned Investments - Cash Dividends Paid**
Let's plug in the values based on the information provided:
1. **Net Cash Provided by Operating Activities (NCOA)**: $140,000
2. **Cash Payments for Planned Investments**: Since there are no sales of long-term assets and $86,000 is used for investing activities, we can assume that this is the cash payments for planned investments. Thus, it will be $86,000.
3. **Cash Dividends Paid**: $11,000
Now let’s put the values into the calculation for free cash flow:
\[ \text{Free Cash Flow} = 140,000 - 86,000 - 11,000 \]
Calculating this:
\[
\text{Free Cash Flow} = 140,000 - 86,000 - 11,000
\]
\[
\text{Free Cash Flow} = 140,000 - 97,000
\]
\[
\text{Free Cash Flow} = 43,000
\]
So, expected free cash flow for 2024 is $43,000.
Now to fill in the labels and amounts:
**Expected free cash flow calculation:**
\[
NCOA - \text{(Cash pmts for planned invest.)} - \text{(Cash Dividends Paid)} = \text{Free Cash Flow}
\]
\[
140,000 - 86,000 - 11,000 = 43,000
\]
To summarize:
- **NCOA** = 140,000
- **Cash pmts for planned invest.** = 86,000
- **Cash Dividends Paid** = 11,000
- **Free Cash Flow** = 43,000
Answer:
\[ 140,000 - 86,000 - 11,000 = 43,000 \]