LF's Pest Control Products Has the Following Information Available What Is LF's Free Cash Flow?
A) $32,000
B) $24,000

question 94

Multiple Choice

LF's Pest Control Products has the following information available: $$\begin{array} { l r } \text { Net Income } & \$ 25,000 \\\text { Cash Provided by Operations } & 35,000 \\\text { Cash Sales } & 65,000 \\\text { Capital Expenditures } & 11,000 \\\text { Dividends Paid } & 3,000\end{array}$$ What is LF's free cash flow?

• A) $32,000
• B) $24,000
• C) $21,000
• D) $11,000

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after subtracting liabilities, representing the ownership interest of shareholders.

Corporation

A business organized under state or federal statutes as a separate legal entity.

Stock Split

A corporate action to increase the number of shares by dividing each share, which decreases its price and makes it more accessible to investors without changing the market capitalization.

Market Value

The ongoing cost at which a commodity or service is available for buying or selling in the market.