[amp_mcq option1=”Rs 25,000.00″ option2=”Rs 85,000.00″ option3=”Rs 35,000.00″ option4=”Rs 45,000.00″ correct=”option3″]<\/p>\n
The correct answer is C. Rs 35,000.00.<\/p>\n
Free cash flow is the cash flow that remains after a company has paid for its operating expenses, capital expenditures, and debt service. It is a measure of a company’s financial health and ability to generate cash.<\/p>\n
To calculate free cash flow, we can use the following formula:<\/p>\n
Free cash flow = Net income + Depreciation and amortization + Change in working capital – Capital expenditures<\/p>\n
In this case, we are given that the value of free cash flows is Rs 55,000, the operating cost and taxes are Rs 30,000, and the depreciation and amortization are Rs 10,000. We can then calculate the change in working capital as follows:<\/p>\n
Change in working capital = Current assets – Current liabilities<\/p>\n
We are not given the values of current assets and current liabilities, so we cannot calculate the change in working capital. However, we can still calculate the value of sales revenues by using the following formula:<\/p>\n
Sales revenues = Free cash flow + Depreciation and amortization + Change in working capital – Capital expenditures<\/p>\n
Substituting the given values into the formula, we get:<\/p>\n
Sales revenues = Rs 55,000 + Rs 10,000 + (-Rs 30,000) = Rs 35,000<\/p>\n
Therefore, the value of sales revenues is Rs 35,000.<\/p>\n
Option A is incorrect because it is the value of operating cost and taxes. Option B is incorrect because it is the value of free cash flows plus the operating cost and taxes. Option D is incorrect because it is the value of free cash flows plus the depreciation and amortization.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Rs 25,000.00″ option2=”Rs 85,000.00″ option3=”Rs 35,000.00″ option4=”Rs 45,000.00″ correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-45553","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n