Ketason Inc. operating cash flows for the year ended 31 December 2020 were $4,000. It paid $600 in interest and $704 in wages. The company also reported $2400 in depreciation expense. Income before tax was $15,000 and it paid $5,100 in taxes. The cash paid for purchase of equipment was $1,300, while the cash received from sale of equipment was $762. What was the free cash flow to the firm in 2020?

Answer rating: 100% (QA)

To calculate the free cash flow to the firm FCFF we use the following formula FCFF Op... View the full answer