Compute Spencer free cash flow

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Question - Spencer Company reports the following amounts in its annual financial statements:

Cash flow from operating activities $90,000 Capital expenditures $35,000*

Cash flow from investing activities (40,000) Average current assets 80,000

Cash flow from financing activities (5,000) Average current liabilities 60,000

Net income 25,000 Total assets 150,000

* This amount is a cash outflow

a. Compute Spencer's free cash flow.

b. Compute Spencer's operating-cash-flow-to-current-liabilities ratio.

c. Compute Spencer's operating-cash-flow-to-capital-expenditures ratio.

Reference no: EM133085702

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