A Firm Reports That in a Certain Year It Had

question 78

Multiple Choice

A firm reports that in a certain year it had a net income of $5.0 million, depreciation expenses of $3.0 million, capital expenditures of $2.0 million, and Net Working Capital decreased by $1.1 million. What is the firm's free cash flow for that year?

• A) $11.1 million
• B) $7.1 million
• C) $5.1 million
• D) $4.9 million

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Definitions:

Labour Used

Refers to the total amount of work done or number of hours worked by employees in a specific period.

Materials Used

The raw inputs consumed in the production of goods.

Time And Material Pricing

A pricing method that charges the customer based on the actual time spent and materials used on a project.

Labour Charge

The amount paid for the work performed by employees or workers, typically based on hours worked or tasks completed.