Which of the Following Is Not a Component of Free

question 131

Multiple Choice

Which of the following is not a component of free cash flow?

• A)Purchases of plant assets
• B)Net income
• C)Dividends
• D)Net cash flows from operating activities

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Definitions:

Finished Goods Inventory

The stock of completed products ready for sale, not yet sold to customers.

Cost of Goods Manufactured

The total production cost of goods completed and made ready for sale during a specified period.

Manufacturing Overhead

All overhead costs related to the production process, apart from direct materials and direct labor expenses.

Adjusted Cost of Goods Sold

The cost of goods sold after adjustments for changes in inventory levels, returns, or allowances have been made.