Analysis of Cash Flows

The following amounts have been taken from the recent financial statements for Carrington Company:

	Current liabilities	Cash from operations	Expenditures on PPE	Dividends (cash)
Carrington Company	$865,000	$1,025,000	$305,000	$165,000

Which of the following amounts is the free cash flow for Carrington Company?

Select one:

a. $555,000

b. $140,000

c. ($310,000)

d. $720,000