Apple Inc. reported the following amounts (in U.S. $ millions) in its financial statements: (a) Based on
Question:
(a) Based on the change in Apple's cash flows between 2014 and 2015, which phase of its corporate life cycle do you think the company is most likely in?
(b) Calculate the company's free cash flow for each of 2015 and 2014.
(c) If you were a shareholder of the company, would you be pleased with the answer calculated in part (b)? Why or why not?
(d) Why do you think the amount of dividends paid is greater than the amount of capital expenditures in 2014?
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Question Posted: