Determine free cash flow of firm


Bubba Ho Tep Company reported net income of $300 million for the most recent fiscal year. The firm had depreciation expenses of $125 million and capital expenditures of $150 million. Although it had no interest expense, the firm did have an increase in net working capital of $20 million. What is Bubba Ho Tep's free cash flow?

a. 170 million

b. 255 million

c. 150 million

d. 5 million

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Finance Basics: Determine free cash flow of firm
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