During 2010, Jennifer Industries reported cash provided by operations of $230,00

Question

During 2010, Jennifer Industries reported cash provided by operations of $230,000,000, cash used in investing of $343,000,000, and cash used in financing of $45,000,000. In addition, cash spent for fixed assets during the period was $138,000,000. Average current liabilities were $325,000,000 and average total liabilities were $858,000,000. No dividends were paid. Based on this information, what was Jennifer's free cash flow?

I know the equation is free cash flow = cash provided by dividends - capital expenditures - cash dividends



A. ($113,000,000).



B. $480,000,000.



C. $92,000,000.



D. ($296,000,000).

Explanation / Answer

Free Cash Flow = Cash Provided by operations - Capital Expenditure
Free Cash Flow = 230,000,000 - 138,000,000
Free Cash Flow = 92,000,000

C. $92,000,000.....(answer)

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