Jackson & Murphy Enterprises expects the following for 2017
Net cash provided by operating activities of $232,000
Net cash provided by financing activities of $18,000
Net cash provided by investing activities of $67,000
Cash dividends paid to stockholders of $16,000
The business plans to spend $107,000 to purchase equipment.
What is the expected amount of free cash flow for 2017?
A) $109,000
B) $125,000
C) $76,000
D) $60,000
A .A) Free cash flow = Net cash provided by operating activities - Cash payments planned for investments in long-term assets - Cash dividends
Free cash flow = $232,000 - $107,000 - $16,000
Free cash flow = $109,000
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