Question

Shauna Lee Company expects the following for 2024​: • Net cash provided by operating activities of $140,000. • Net cash provided by financing activities of $64,000. • Net cash used for investing activities of $86,000 ​(no sales of​ long-term assets). • Cash dividends paid to stockholders of $13,000. How much free cash flow does Lee expect for 2024​?

Answer 1

Answer:

See below

Explanation:

Computation of Cash flow

Net cash provided by operating activities

$140,000

Less:

Net cash used for investing activities

($86,000)

Less:

Net cash provided by financing activities

(64,000)

Ending cash balance

($10,000)

Therefore, Lee would expect free cash flow of ($10,000) for 2024.