Net Cash Provided by Operating Activities Is $2

question 115

Multiple Choice

Net cash provided by operating activities is $2.3 million.Planned capital expenditures are $2 million.Depreciation expense is $1 million per year.What is free cash flow?

• A)($700,000)
• B)$300,000
• C)$1,000,000
• D)$1,300,000

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Definitions:

Elastic

Describes a situation where the quantity demanded or supplied of a good is sensitive to changes in price.

Short Run

A period in economics during which the quantity of at least one input (such as plant size) is fixed and cannot be changed.

Long Run

A period in economics sufficient for all markets to adjust to equilibrium, including the adjustment of all production factors and prices of inputs.

Cross-Price Elasticity

A measure of how the demand for one good changes in response to a change in the price of another good.