Question

Suggett Corporation's net cash provided by operating activities was $34; its income taxes were $12; its capital expenditures were $24; and its cash dividends were $7. How much was the company's free cash flow? A. $77 B. $(19) C. $3 D. $15

Answer 1

Answer: Option (C) is correct.

Explanation:

Given that,

Net cash provided by operating activities = $34

Income taxes = $12

Capital expenditures = $24

Cash dividends = $7

Free Cash Flow = Cash Provided by Operating Activities - Dividends - Capital Expenditure

                           = $34 - $7 - $24

                           = $3

Therefore, the company's free cash flow was $3.