Question
Free cash flow is 1. cash from financing, less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends 2.
Free cash flow is
| 1. | cash from financing, less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends |
| 2. | cash flow from operations, less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends |
| 3. | all cash in the bank |
| 4. | cash from operations |
2.Which one of the following below would not be classified as an operating activity?
| 1. | selling expenses |
| 2. | interest expense |
| 3. | payment of dividends |
| 4. | income taxes |
3.Discount Sales sells some used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $4,500. The value of this transaction in the Investing section of the statement of cash flows is:
| 1. | $2,750 |
| 2. | $1,750 |
| 3. | $12,500 |
| 4. | $4,500 |
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