For the year 2017, a company had the net income for $28,750. The additional information is summarized as follows: Description Amount Depreciation expenses Loss on disposal of assets Net cash provided by operating activities Purchase of investments $4,720 $5,300 $36,840 $6,820 $8,880| $10,000 Sale of asset Retirement of bonds Compute the free cash flow. a. The free cash flow is $31,140. b. The free cash flow is $30,020. c. The free cash flow is $31,950. d. The free cash flow is $33,070.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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For the year 2017, a company had the net income for $28,750. The additional information
is summarized as follows:
Description
Amount
Depreciation expenses
Loss on disposal of assets
Net cash provided by operating activities
Purchase of investments
Sale of asset
Retirement of bonds
$4,720
$5,300
$36,840
$6,820
$8,880
$10,000
Compute the free cash flow.
a. The free cash flow is $31,140.
b. The free cash flow is $30,020.
c. The free cash flow is $31,950.
d. The free cash flow is $33,070.
Transcribed Image Text:For the year 2017, a company had the net income for $28,750. The additional information is summarized as follows: Description Amount Depreciation expenses Loss on disposal of assets Net cash provided by operating activities Purchase of investments Sale of asset Retirement of bonds $4,720 $5,300 $36,840 $6,820 $8,880 $10,000 Compute the free cash flow. a. The free cash flow is $31,140. b. The free cash flow is $30,020. c. The free cash flow is $31,950. d. The free cash flow is $33,070.
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