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This basic template can be used to calculate free cash flow (FCF). FCF is a measure of financial performance that represents the cash that a company is able to generate after accounting for expenses required to maintain and expand the business. Thus, the cash flow that is left once changes in working capital and capital expenditures are subtracted from operating cash flow is the FCF. Some investors prefer to use FCF to evaluate potential investments, rather than net income where earnings figures can be manipulated, because FCF provides a more accurate representation of a company's ability to generate cash. Furthermore, companies can use the FCF figure to determine how much cash the company will have available to distribute to equity holders.
Free Cash Flow <Company Name> #REF! 1/31/2010 Cash on hand - Beginning Balance CASH RECEIPTS Cash sales Collections on accounts receivable Interest, other income Loan proceeds Owner contributions TOTAL CASH RECEIPTS 0 Total cash available 0 CASH PAID OUT Operating Expenses Loan payments Taxes Capital purchases Other startup costs Owners' withdrawals TOTAL CASH PAID OUT 0 Cash on hand - Ending Balance 0
"Free Cash Flow"