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
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 6EA: Use the following information from Birch Companys balance sheets to determine net cash flows from...
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3171857-81cd-481f-bdb6-cf391ededd85%2Facf23235-ef35-4a78-a1c5-afe3deef8434%2F1eyvrm8k_processed.png&w=3840&q=75)
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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