During the year,Clarendon Corporation had net sales of $500,000,net income of $50,000,average total assets of $700,000,dividend payments of $35,000,net cash flows from operating activities of $70,000,purchases of plant assets of $75,000,and sales of plant assets of $90,000.Free cash flow equals
A) $35,000.
B) $85,000.
C) $20,000.
D) $50,000.
Correct Answer:
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