During the Year,Team Shirts,Inc

question 268

Multiple Choice

During the year,Team Shirts,Inc.had net cash from operating activities of $50,000; it paid $10,000 in dividends; and it purchased long-term assets for $30,000.Free cash flow for the year was ________.

• A)$90,000
• B)$40,000
• C)$20,000
• D)$10,000

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Definitions:

ABC

An abbreviation for Activity-Based Costing, a method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Direct Method

A cash flow statement preparation method that shows the specific sources of operating cash receipts and payments, contrasting with the indirect method.

ABC

Activity-Based Costing, an accounting method that assigns costs to products and services based on the activities and resources used in their creation and delivery.

Joint Products

The outputs generated from a joint manufacturing process.