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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A) High levels of taxable income B) Low levels of taxable income C) The business is basically risky with unpredictable cash flows. D) Risk of bankruptcy would make customers reluctant to buy the company's products.
The U.S. Congress has charged the Public Company Accounting Oversight Board with the ultimate responsibility for developing generally accepted accounting principles
Indicate whether the statement is true or false