The Free Cash Flow in 2015 equals to $235.
What is the meaning of Free Cash Flow?
In accounting, a Free cash flow refers to the cash a company generates after taking into consideration cash outflows that support its operations and maintain its capital assets. In other words, it means the cash left over after a company pays for its operating expenses (OpEx) and capital expenditures (CapEx).
The formula for free cash flow is {EBIT * (1-Tax rate) + Depreciation - Capital expenditure - Change in net operating working capital}.
The computation of the free cash flow is as follows:
= ($200-$70) + $600 - $650 - ($1795 - $1950)
= $130 + $600 - $650 + $155
= $235.
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