You Have Gathered This Information on a Firm: $500,000 Sales

question 85

Multiple Choice

You have gathered this information on a firm: $500,000 sales, $10,000 cash dividends, $300,000 cost of goods sold, $20,000 administrative expense, $20,000 depreciation expense, $40,000 interest expense, $10,000 purchase of productive equipment, no changes in working capital, and a tax rate of 35%.What is the free cash flow?

• A)$141,000
• B)$168,000
• C)$78,000
• D)$142,000

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Definitions:

Federal Bureau of Investigation (FBI)

A federal agency of the United States responsible for investigating and enforcing the national laws.

National Security Agency

A U.S. government agency responsible for global monitoring, collection, and processing of information and data for foreign intelligence and counterintelligence purposes.

Drug Enforcement Agency

A federal law enforcement agency in the United States tasked with combating drug smuggling and use within the country.

Cheating

The act of being dishonest or unfair in order to gain an advantage, particularly in the context of academic or romantic endeavors.