On Its Statement of Cash Flows, Mike's Motors Reported Cash

question 117

Multiple Choice

On its Statement of Cash Flows, Mike's Motors reported cash flow from operating activities of $108,000, cash flow from investing activities of $87,000, and cash flow from financing activities of ($61,000) . Mike's Motors invested $55,000 cash in long-term assets. Mike's Motors' free cash flow is:

• A)$32,000.
• B)$6,000.
• C)$53,000.
• D)$79,000.

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Definitions:

Deposit

A sum of money placed into an account or given as a security for the future payment of a service.

Certified Check

A check validated by a bank where the bank guarantees the availability of the funds behind the check.

Personal Check

A hand-written document that orders a bank to pay a specific amount of money from the writer's account to another party.

Checking Account

A bank account that allows for frequent transactions, including deposits, withdrawals, and check payments.