Which metric is cash available after accounting for capital expenditures?

• A. Net income
• B. Free Cash Flow
• C. Operating Cash Flow
• D. Working Capital

Answer: (B)

Free Cash Flow reflects the cash available after spending on long-term assets. It is calculated as cash from operating activities minus capital expenditures, so it shows how much cash the company has left after maintaining or expanding its asset base. Net income is profitability on an accrual basis, not actual cash in hand. Operating cash flow is cash from core operations before subtracting capital investments. Working capital measures short-term liquidity, not cash after capital spending. Therefore, the cash remaining after accounting for capital expenditures is Free Cash Flow.