-Rs 7,000.00
Rs 7,000.00
Rs 17,000.00
-Rs 17,000.00
Answer is Right!
Answer is Wrong!
The correct answer is: B. Rs 7,000.00
Free cash flow is the cash flow available for a company to use for investment or distribution to shareholders after taking into account capital expenditure and working capital requirements.
It is calculated as follows:
Free cash flow = Operating cash flow – Capital expenditure
In this case, the operating cash flow is Rs 12,000 and the capital expenditure is Rs 5,000. Therefore, the free cash flow is Rs 7,000.
Option A is incorrect because it is the negative of the free cash flow.
Option C is incorrect because it is the sum of the operating cash flow and the capital expenditure.
Option D is incorrect because it is the negative of the sum of the operating cash flow and the capital expenditure.