Authentic Exposure Company Had the Following Transactions That Took Place

question 176

Multiple Choice

Authentic Exposure Company had the following transactions that took place during the year: I.Paid amount owing to suppliers $2,750.
II) Purchased new equipment for $5,000 by signing a long-term note payable.
III) Purchased a patent and paid $15,000 cash for the asset.
How what is the total effect of these transactions on free cash flow?

• A)Increase
• B)Decrease
• C)No Effect
• D)Cannot be determined

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