Buckley Corporation's most recent comparative balance sheet appears below:
The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock.
-The free cash flow for the year was:
A) $(8)
B) $14
C) $128
D) $308

Question

Buckley Corporation's most recent comparative balance sheet appears below:
  The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock.
-The free cash flow for the year was:
A) $(8) 
B) $14 
C) $128 
D) $308

Quizplus · Accepted Answer

11ea7761_159e_4c04_81a5_d32020ea62b3_TB2580_00 Free cash flow = Net cash provided by operating activities - Capital expenditures - Dividends
= $150 - $136 - $22 = $(8)

Buckley Corporation's Most Recent Comparative Balance Sheet Appears Below