Threets Corporation's most recent comparative balance sheet appears below: The company's net income for the year was $109 and it paid a cash dividend. It did not dispose of any property, plant, and equipment during the year. The company did not issue any bonds payable or repurchase any of its own common stock.
-The free cash flow for the year was:
A)$38
B)$71
C)$285
D)$11

Question

Threets Corporation's most recent comparative balance sheet appears below:  The company's net income for the year was $109 and it paid a cash dividend. It did not dispose of any property, plant, and equipment during the year. The company did not issue any bonds payable or repurchase any of its own common stock.
-The free cash flow for the year was:
A)$38 
B)$71 
C)$285 
D)$11

Quizplus · Accepted Answer

Free cash flow = Net cash provided by operating activities - Capital expenditures - Dividends
= $98 - $60 - $27 = $11

Threets Corporation's Most Recent Comparative Balance Sheet Appears Below