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Terastar Corp What Is the Trend in Free Cash Flows Relative to

Question 74

Multiple Choice

Terastar Corp.reports the following amounts for 2012 and 2013.
 Net Income  Operating  Investing  Financing 2012$10,000$15,000$8,000$10,000201312,00019,000$10,0006,000\begin{array} { | l | c | c | c | c | } \hline & \text { Net Income } & \text { Operating } & \text { Investing } & \text { Financing } \\\hline 2012 & \$ 10,000 & \$ 15,000 & - \$ 8,000 & \$ 10,000 \\\hline 2013 & 12,000 & 19,000 & - \$ 10,000 & - 6,000 \\\hline\end{array}
What is the trend in free cash flows relative to net income?


A) Both are increasing.
B) Net income is trending upward and free cash flows are trending downward.
C) Both are decreasing.
D) Net income is trending downward and free cash flows are trending upwarD.

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