If Net Cash Flows from Operating Activities Total $208,000,purchases of Plant

question 118

Multiple Choice

If net cash flows from operating activities total $208,000,purchases of plant assets total $60,000,dividends total $24,000,and sales of plant assets total $34,000,the free cash flow equals

• A) $158,000.
• B) $326,000.
• C) $210,000.
• D) $90,000.

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Definitions:

Balance Sheet

An accounting document that lists a business's assets, liabilities, and the equity of its shareholders at a specific date.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net assets, representing the company's reputation, customer relationships, and other unquantifiable factors.

Internally Generated

Assets or resources that are created within an organization, without acquiring them from external sources.

Gain On Sale

The profit received from selling a capital asset for more than its purchase price.