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When using the direct method for the preparation of the statement of cash flows, what effect does a decrease in accounts receivable have? O A
When using the direct method for the preparation of the statement of cash flows, what effect does a decrease in accounts receivable have? O A decrease to cash payments to suppliers. O An increase to cash receipts from customers. O A decrease to cash receipts from customers. It does not affect the cash flow from operating activities. Which of the following is the calculation for free cash flow? O Net income less capital expenditures less cash dividends O Net income less capital expenditures plus cash dividends O Cash provided by operations less capital expenditures plus cash dividends Cash provided by operations less capital expenditures less cash dividends Simpson Inc. reported $100,000 provided by operating activities. The company invested $30,000 in production equipment and it paid $10,000 in dividends. How much is its free cash flow? $60,000 $70,000 $100,000 $140,000
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