Morgan Corporation reports the following information: $\begin{array}{lr}
\text { Net cash provided by operating activities } & \$ 255,000 \
\text { Average current liabilities } & 150,000 \
\text { Average long-term liabilities } & 100,000 \
\text { Dividends paid } & 60,000 \
\text { Capital expenditures } & 110,000 \
\text { Pavments of debt } & 35,000
\end{array}$ Morgan's free cash flow is
A)$50,000.
B)$85,000.
C)$145,000.
D)$195,000.

Question

Quizplus · Accepted Answer

Free cash flow is calculated as net cash provided by operating activities minus capital expenditures and dividends paid. So, $255,000 - $110,000 - $60,000 = $85,000.

Morgan Corporation Reports the Following Information Morgan's Free Cash Flow Is A)$50,000

Morgan Corporation Reports the Following Information Morgan's Free Cash Flow Is
A)$50,000