Hutchings Corporation's Net Cash Provided by Operating Activities Was $124;

question 63

Multiple Choice

Hutchings Corporation's net cash provided by operating activities was $124; its capital expenditures were $54; and its cash dividends were $33. The company's free cash flow was:

• A) $70
• B) $91
• C) $211
• D) $37

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Definitions:

Incremental Costs

Costs that change as a result of a new decision or alternative action, also known as marginal costs.

Incremental Costs

Incremental costs are the additional costs incurred when a business increases its level of operations or production.

Make or Buy

A decision-making process used by companies to determine whether to produce goods in-house or purchase them from an external supplier.

Incremental Costs

Costs that change depending on the level of production or an alternative course of action.