During the year,Team Shirts,Inc.had net cash from operating activities of $50,000; it paid $20,000 in dividends; it purchased equipment for $30,000; and it purchased office supplies for $10,000.Free cash flow for the year was ________.
A)$0
B)$(10,000)
C)$10,000
D)$100,000

Question

Quizplus · Accepted Answer

Free cash flow is calculated as net cash from operating activities minus capital expenditures and dividends. Here, $50,000 (operating activities) - $30,000 (equipment) - $20,000 (dividends) = $0.

During the Year,Team Shirts,Inc