You Have Gathered This Information on a Firm: $500,000 Sales,$10,000

question 92

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) $128,000
• D) $142,000

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