Milford Lighting Supply expects the following for 2016:

Milford expects to spend $160,000 to modernize its showroom.
How much free cash flow does Milford expect for 2016?

Question

Milford Lighting Supply expects the following for 2016:

Milford expects to spend $160,000 to modernize its showroom.
How much free cash flow does Milford expect for 2016?

Quizplus · Accepted Answer

C)Free cash flow = Net cash provided by operating activities - Cash payments planned for investments in long-term assets - Cash dividends
Free cash flow = $278,000 - $160,000 - $30,000
Free cash flow = $88,000

Milford Lighting Supply Expects the Following for 2016