If net cash flows from operating activities total $208,000,purchases of plant assets total $60,000,dividends total $24,000,and sales of plant assets total $34,000,the free cash flow equals
A) $158,000.
B) $326,000.
C) $210,000.
D) $90,000.

Question

Quizplus · Accepted Answer

Free Cash Flow = Net Cash Flows from Operating Activities - Purchases of Plant Assets + Sales of Plant Assets - Dividends Paid

= $208,000 - $60,000 + $34,000 - $24,000

= $158,000.

Therefore, the correct answer is A) $158,000.

If Net Cash Flows from Operating Activities Total $208,000,purchases of Plant