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Maxwell Corporation had a net income of $40,000, interest of $4,000, depreciation of $5,000, additions to net working capital of $6,000, and capital expenditures of $20,000. Maxwell Corporation's free cash flow amounts to ______.

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abiolataiwo2015

Maxwell Corporation's free cash flow amounts to $23,000.

Free cash flow

First step is to calculate cash flow from operations

Cash flow from operations = Net income + Interest + Deprecation - Additions to net working capital

Cash flow from operations=$40,000 + $4,000 + $5,000 - $6,000

Cash flow from operations= $43,000

Second step is to calculate free cash flow

Free cash flow=Cash flow from operations -Capital expenditures

Free cash flow=$43,000 - $20,000

Free cash flow= $23,000

Inconclusion Maxwell Corporation's free cash flow amounts to $23,000.

Learn more about free cash flow here:https://brainly.com/question/735261

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