Accounting statements represent a company's carnings, but this is not the real cash that a company generates. Earnings data can be manipulated and can be deceiving. Thus, corporate decision makers and security analysts focus on the free cash flow that a firm generates to analyze the company's real cash position. Which of the following statements best describes free cash flow? Cash fows generated by operatiog the business Residual cash flow after taking into account operating cash flows, including fixed-asset acquisitions, asset sales, and working-capital expenditures Suppose you are the only owner of a chain of coffee shops near universities. Your current cafs are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 - Your existing business generates $135,000 in EBrT. - The corporate tax rate applicable to your business is 25%. - The depreciation expense reported in the financial statements is $25,714. - You dont need to spend any money for new equipment in your existing cafs; however, you do need 520,250 of additional cash. - You also need to purchase $10,800 in additional supplies - such as tableclothes and napkins, and more formal tableware-on credit. - It is aho estimated that your accruals, incuding taxes and wages payable, will increase by 36,750 . Based on your evaluation you have In free cash flow. Can a company have negative free cash flow