14. Financial Statement Analysis
Ratios: Free Cash Flow
Multiple Choice
Multiple ChoiceABC Company's Statement of Cash Flows indicated the following:Cash Flows from Operating Activities $120,000; Cash Flows from Investing Activities ($80,000); and Cash Flows from Financing Activities $200,000. Other information includes the purchase of Land for $25,000 and Machinery for $15,000. During the year, ABC Company paid $10,000 in dividends. What is ABC's free cash flow?
A
$30,000
B
$40,000
C
$70,000
D
$240,000
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