Calculate free cash flow


Heart Corporation had year-end assets of $1,200,000, sales of $1,650,000, net income of $140,000, net cash flows from operating activities of $195,000, dividends of $60,000, purchases of plant assets of $250,000, and sales of plant assets of $45,000. In 2010, year-end assets were $1,050,000. Calculate free cash flow and the cash-generating efficiency ratios of cash flow yield, cash flows to sales, and cash flows to assets.

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Accounting Basics: Calculate free cash flow
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