A Firm Reports That in a Certain Year It Had

question 78

Multiple Choice

A firm reports that in a certain year it had a net income of $5.0 million, depreciation expenses of $3.0 million, capital expenditures of $2.0 million, and Net Working Capital decreased by $1.1 million. What is the firm's free cash flow for that year?

• A) $11.1 million
• B) $7.1 million
• C) $5.1 million
• D) $4.9 million

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Definitions:

Prevalence

The proportion of a population found to have a condition or characteristic at a specific time.

Incidence

The rate at which new cases of a disease or condition occur in a specific population over a certain period of time.

Risk Factors

Conditions or variables associated with a higher risk of having a disorder.

Strong Positive Correlation

A relationship between two variables in which both variables move in the same direction with a high degree of association.