Suppose that Morgan Corporation produced and sold 4,800 laptop computers during 2022.It reported $130,000 cash provided by operating activities.In order to maintain production at 4,800 laptops, Morgan invested in $8,600 in equipment.Morgan paid $1,400 in dividends.What is Morgan's free cash flow?
A)$120,000
B)$140,000
C)$137,000
D)$130,000

Question

Quizplus · Accepted Answer

Free cash flow is calculated as cash provided by operating activities minus capital expenditures and dividends. So, $130,000 - $8,600 - $1,400 = $120,000.

Suppose That Morgan Corporation Produced and Sold 4,800 Laptop Computers