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Assume that a company provided the following statement of cash flows ( all sales are on account ) : Operating activities: Net income $ 4
Assume that a company provided the following statement of cash flows all sales are on account:
Operating activities:
Net income $
Adjustments to convert net income to a cash basis:
Depreciation $
Decrease in accounts receivable
Increase in inventory
Increase in accounts payable
Net cash provided by used in operating activities
Investing activities:
Additions to property, plant, & equipment
Net cash provided by used in investing activities
Financing activities:
Issuance of common stock
Cash dividends paid
Net cash provided by used in financing activities
Net increase in cash and cash equivalents
Beginning cash and cash equivalents
Ending cash and cash equivalents $
How much is the companys free cash flow?
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