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Suppose that Sheffield Corp. produced and sold 4800 laptop computers during 2022. It reported $137800 cash provided by operating activities. In order to maintain production at 4800 laptops, Sheffield invested in $9120 in equipment. Sheffield paid $1480 in dividends. What is Sheffield's free cash flow? $137800 $148400 $144800 $127200

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anthougo

Sheffield Corporation's free cash flow is $127,200.

What is free cash flow?

Free cash flow represents the difference between operating profit with taxes and total investment in operating capital.

The formula for computing the free cash flow (FCF) is FCF = Net Operating Profit After Taxes - Capital investment

Data and Calculations:

Operating profit = $137,800

Investment = $9,120

Dividends payment = $1,480

Free Cash Flow = $127,200 ($137,800 - $9,120 - $1,480)

Thus, Sheffield Corporation's free cash flow is $127,200.

Learn more about computing the free cash flow at https://brainly.com/question/15848997

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