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:
- Net Cash Provided by Operating Activities (NCOA): $140,000
- 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.
- 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: \[ 140,000 - 86,000 - 11,000 = 43,000 \]