For the year ending December 31,2018,Sparks Electric expects net cash provided by operations of $328,000,net cash used by investing activities of $141,000,and net cash provided by financing activities of $50,000.Sparks plans to spend $259,000 to add a warehouse for its operations and pays $35,000 in cash dividends.What is the amount of free cash flow?
A) $237,000
B) $34,000
C) $69,000
D) $(72,000)

Question

Quizplus · Accepted Answer

Free cash flow = Net cash provided by operating activities - Cash payments planned for investments in long-term assets - Cash dividends
Free cash flow = $328,000 - $259,000 - $35,000
Free cash flow = $34,000

For the Year Ending December 31,2018,Sparks Electric Expects Net Cash