Suggett Corporation's net cash provided by operating activities was $34; its income taxes were $12; its capital expenditures wer

Question

3 years ago

14

e $24; and its cash dividends were $7. How much was the company's free cash flow? A. $77 B. $(19) C. $3 D. $15

1 answer:

yan [13] · Answer 1 · 2022-04-04T12:45:03+03:00

Answer: Option (C) is correct.

Explanation:

Given that,

Net cash provided by operating activities = $34

Income taxes = $12

Capital expenditures = $24

Cash dividends = $7

Free Cash Flow = Cash Provided by Operating Activities - Dividends - Capital Expenditure

= $34 - $7 - $24

= $3

Therefore, the company's free cash flow was $3.