Milford Lighting Supply expects the following for 2016
Net cash provided by operating activities of $281,000
Net cash provided by financing activities of $65,000
Net cash provided by investing activities of $85,000
Cash dividends paid to stockholders of $24,000
Milford expects to spend $157,000 to modernize its showroom.
How much free cash flow does Milford expect for 2016?
A) $124,000
B) $277,000
C) $100,000
D) $107,000
C .C) Free cash flow = Net cash provided by operating activities - Cash payments planned for investments in long-term assets - Cash dividends
Free cash flow = $281,000 - $157,000 - $24,000
Free cash flow = $100,000
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