During the Current Year, the Operations of a Shipping Company

question 114

Essay

During the current year, the operations of a shipping company provided net cash flows of $600,000. The company made capital expenditures of $270,000 and paid dividends of $130,000.
A)Compute the company's free cash flow.
B)Compute the company's cash flow adequacy ratio assuming the average maturity value of its long-term debt over the next 5 years is $650,000.

• A)Compute the company's free cash flow.
• B)Compute the company's cash flow adequacy ratio assuming the average maturity value of its long-term debt over the next 5 years is $650,000.

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Definitions:

Generalize

To make a general statement or concept by inferring from specific cases.

Sufficient

Adequate to achieve a goal or meet a requirement without the need for more.

False Alternative

An informal fallacy involving presenting two options as the only possibilities when, in fact, more options exist.

Fallacy Of Context

A logical fallacy where the context of an argument is ignored or altered to make an unrelated point seem relevant.