The following is the information pertaining Gamma Company: Particulars Amount Average current liabilities Average long-term liabilities Dividends paid |Capital expenditures Repayment of debt Net cash provided by operating activities S450,000 |S175,000| S75,000 S40,000 $125,000 $25,000 Calculate the free cash flow from the given details. (A) $285,000 (B) $325,000 (C) $450,000 (D) $425,000

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 32BE
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The following is the information pertaining Gamma Company:
Particulars
Amount
Net cash provided by operating activities S450,000
|Average current liabilities
Average long-term liabilities
Dividends paid
Capital expenditures
Repayment of debt
$175,000
$75,000
$40,000
$125,000
$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 S450,000 |Average current liabilities Average long-term liabilities Dividends paid Capital expenditures Repayment of debt $175,000 $75,000 $40,000 $125,000 $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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