Sunland Co. reports the following information:- **Net cash provided by operating activities**: $422,000- **Average current liabilities**: $314,000- **Average long-term liabilities**: $214,000- **Dividends paid**: $130,000- **Capital expenditures**: $230,000- **Purchase of treasury stock**: $23,000- **Payments of debt**: $72,000Sunland’s free cash flow is:- $192,000- $292,000- $62,000- $160,000### Explanation:To calculate the free cash flow, use the formula:Free Cash Flow = Net Cash from Operating Activities - Capital Expenditures - Dividends PaidIn this case:Free Cash Flow = $422,000 - $230,000 - $130,000 = $62,000The correct answer is $62,000.

Free Cash Flow is the money a company has left over after paying for its day-to-day operations and…

Sunland Co. reports the following information: Net cash provided by operating activities Average current liabilities Average long-term liabilities Dividends paid Capital expenditures Purchase of treasury stock Payments of debt Sunland's free cash flow is O $192000. O $292000. O $62000. O $16000. $422000 314000 214000 130000 230000 23000 72000

Sunland Co. reports the following information: Net cash provided by operating activities Average current liabilities Average long-term liabilities Dividends paid Capital expenditures Purchase of treasury stock Payments of debt Sunland's free cash flow is O $192000. O $292000. O $62000. O $16000. $422000 314000 214000 130000 230000 23000 72000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: Accounting
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