Mansour Machines had cash ﬂow from operations of $5,070, cash ﬂows from investments of $(1,244), capital expenditures of $1,244, cash ﬂows from ﬁnancing of $(3,537), including $1,500 of dividends paid, and net income of $2,314. Mansour's free cash ﬂow is:
A) $2,326
B) $1,533
C) $2,756
D) $3,826

Question

Quizplus · Accepted Answer

Free cash flow is calculated as cash flow from operations minus capital expenditures. Therefore, $5,070 (cash flow from operations) - $1,244 (capital expenditures) = $3,826.

Mansour Machines Had Cash ﬂOw from Operations of $5,070, Cash