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The following is the information pertaining Gamma Company: Particulars Amount Net cash provided by operating activities $450,000 Average current liabilities $175,000 Average long-term liabilities $75,000 Dividends paid $40,000 Capital expenditures $125,000 Repayment of debt $25,000 Calculate the free cash flow from the given details. (A) $285,000 (B) $325,000 (C) $450,000 (D) $425,000

The following is the information pertaining Gamma Company: Particulars Amount Net cash provided by operating activities $450,000 Average current liabilities $175,000 Average long-term liabilities $75,000 Dividends paid $40,000 Capital expenditures $125,000 Repayment of debt $25,000 Calculate the free cash flow from the given details. (A) $285,000 (B) $325,000 (C) $450,000 (D) $425,000

FINANCIAL ACCOUNTING
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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The following is the information pertaining Gamma Company: Particulars Amount Net cash provided by operating activities $450,000 Average current liabilities $175,000 Average long-term liabilities $75,000 Dividends paid $40,000 Capital expenditures $125,000 Repayment of debt $25,000 Calculate the free cash flow from the given details. (A) $285,000 (B) $325,000 (C) $450,000 (D) $425,000
Transcribed Image Text:The following is the information pertaining Gamma Company: Particulars Amount Net cash provided by operating activities $450,000 Average current liabilities $175,000 Average long-term liabilities $75,000 Dividends paid $40,000 Capital expenditures $125,000 Repayment of debt $25,000 Calculate the free cash flow from the given details. (A) $285,000 (B) $325,000 (C) $450,000 (D) $425,000
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