Exam 2: Financial Statements and Cash Flow

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________ is calculated by adding back noncash expenses to earnings before interest and taxes,subtracting taxes,and adjusting for any changes in total assets or current liabilities that affect cash flows.

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Free cash flow is

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Brad's Company has equipment with a book value of $1,380 that could be sold today at a 20 percent discount.Its inventory is valued at $360 and could be sold to a competitor for 90 percent of that value.The firm has $45 in cash and customers owe them $240,of which 97 percent is collectible.What is the accounting value of its liquid assets?

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Pete's Boats has beginning long-term debt of $647 and ending long-term debt of $749.The beginning and ending total debt balances are $801 and $768,respectively.The interest paid is $54.What is the amount of the cash flow to the creditors?

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A(n)________ asset is one that can be quickly converted into cash without significant loss in value.

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