Suggett Corporation's net cash provided by operating activities was $34; its income taxes were $12; its capital expenditures were $24; and its cash dividends were $7. The company's free cash flow was:
A) $(19)
B) $77
C) $3
D) $15

Question

Quizplus · Accepted Answer

Free cash flow is calculated as net cash provided by operating activities minus capital expenditures. Therefore, $34 (net cash from operating activities) - $24 (capital expenditures) = $10. However, the correct calculation for free cash flow does not directly involve income taxes or cash dividends in its basic formula, indicating a mistake in my initial calculation. The correct free cash flow should indeed be calculated as net cash provided by operating activities minus capital expenditures, which is $34 - $24 = $10, not matching any of the provided options directly. Given the options and the context, it seems there was an error in my explanation regarding the choice provided. The correct approach to find the free cash flow based on the given options and standard calculation methods would still involve correcting the oversight in the interpretation of the provided choices.

Suggett Corporation's Net Cash Provided by Operating Activities Was $34;