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21 June, 05:30

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

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  1. 21 June, 07:02
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    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.
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