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Here's an example for Stellar Consulting Inc. The following four transactions occurred during the year. Transaction A: During the year, the company signed consulting contracts
Here's an example for Stellar Consulting Inc. The following four transactions occurred during the year. Transaction A: During the year, the company signed consulting contracts worth $50 million. Transaction B: During the year, the company completed work on consulting contracts with a total contract price of $35 million. Work on the remaining $15 million in contracts is 60% completed. Transaction C: During the year, the company collected cash from its consulting contracts, totaling $25 million. Transaction D: On January 1st, the company purchased advanced engineering computers and software for $10 million in cash. Due to rapid developments in technology, these computers and software are expected to be useful for only a total of three years. What is Stellar Consulting Inc.'s free cash flow for the year? Selected Answer: Answers: b. $25 million a. $50 million b. $25 million c. $15 million d. $30 million
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