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:

Obese

A medical condition characterized by excessive body fat, which presents a risk to health.

Binge-Eating Disorder

A disorder marked by frequent binges but not extreme compensatory behaviors.

Compensatory Behavior

Actions taken to offset or make up for a perceived flaw or mistake.

Acute Stress Disorder

A mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms that occur within one month after exposure to a traumatic event.