During Year 2,the Operations of a Shipping Company Provided Net $\$ 650,000$

question 196

Essay

During Year 2,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 compary's cash flow adequacy ratio assuming the average maturity value of its long-term debt over the next five years is $\$ 650,000$ .

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Refers to the economic system of the United States, characterized by a mixed economy that includes private freedom, combined with centralized economic planning and government regulation.

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