Question

Corporation's net cash provided by operating activities was $115; its net income was $95; its capital expenditures were $65; and its cash dividends were $17. The company's free cash flow was:__________.

A. $292
B. $13
C. $33
D. $31

Answer 1

C. $33

Step-by-step explanation:

Free cash flow is calculated as;

= Net cash provided by operating activities - Cash used for capital expenditure - Cash dividend

Given that;

Net cash provided by operating activities = $115

Cash used for capital expenditures = $65

Cash dividend = $17

The company's free operating cash flow;

= $115 - $65 - $17

= $33