Terastar Corp What Is the Amount of Terastar's Free Cash Flows for \begin{array}

question 28

Multiple Choice

Terastar Corp. reports the following amounts for 2012 and 2013: $$\begin{array} { | c | c | c | c | c | } \hline & \begin{array} { c } \text { Net } \\\text { Income }\end{array} & \begin{array} { c } \text { Operating } \\\text { Cash Flows }\end{array} & \begin{array} { c } \text { Investing } \\\text { Cash Flows }\end{array} & \begin{array} { c } \text { Financing } \\\text { Cash Flows }\end{array} \\\hline 2012 & \$ 10,000 & \$ 15,000 & - \$ 8,000 & \$ 10,000 \\\hline 2013 & 12,000 & 19,000 & - \$ 10,000 & - 6,000 \\\hline\end{array}$$ What is the amount of Terastar's free cash flows for 2013?

• A) $3,000.
• B) $13,000.
• C) $9,000.
• D) $7,000.

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