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What Are Free Cash Flows for a Firm? What Does

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What are free cash flows for a firm? What does it mean when a firm's free cash flow is negative?


Definitions:

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by using a cost-to-retail price ratio.

Estimated Cost

An approximation of the cost for goods or services based on available information, used for budgeting and planning purposes.

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