Bubba Ho-Tep Company Reported Net Income of $290 Million for the Most

question 80

Multiple Choice

Bubba Ho-Tep Company reported net income of $290 million for the most recent fiscal year. The firm had depreciation expenses of $100 million and capital expenditures of $150 million. Although it had no interest expense, the firm did have an increase in net working capital of $30 million. What is Bubba Ho-Tep's free cash flow?

• A) $10 million
• B) $210 million
• C) $270 million
• D) $570 million

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Definitions:

Pyroclastic Flow

A fast-moving current of hot gas and volcanic materials that flows down the side of a volcano during an explosive eruption.

Sandstone

A sedimentary rock consisting of sand-sized mineral particles or rock fragments.

Basaltic Lava

A type of magma or lava that is low in silica and has a relatively low viscosity, leading to smoother flow characteristics.

Obsidian/Glass

A natural volcanic glass formed from the rapid cooling of acidic lava, known for its conchoidal fracture and sharp edges.