During the Year,Team Shirts,Inc

question 256

Multiple Choice

During the year,Team Shirts,Inc.had net cash from operating activities of $50,000; it paid $20,000 in dividends; it purchased equipment for $30,000; and it purchased office supplies for $10,000.Free cash flow for the year was ________.

• A)$0
• B)$(10,000)
• C)$10,000
• D)$100,000

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Definitions:

Mixed Cost

A cost composed of a fixed and variable component, changing with the level of output or activity.

Variable Cost

A cost that varies in direct proportion to changes in the level of activity or production volume.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance.

Total Miles Driven

The cumulative distance that a vehicle has traveled, often used for business accounting or to monitor vehicle performance and maintenance needs.