Grossman lumber reported $102,000 net cash provided by its operating activities. if the company invests $4,000 in capital expenditures and distributes $8,000 in dividends, its free cash flow will be
a : $102,000.
b : $94,000.
c : $90,000.
d : $98,000.

(C) $90,000

Explanation:

As per the question,

Given data are:

Net cash provided = $102,000

Capital expenditures = $4,000

Dividends = $8,000

Free cash flow can be calculated as:

Free cash flow =

Total cash provided by the company - ( Total expenditures + Dividends)

Therefore.

Free cash flow = $102,000 - ($4,000 + $8,000)

                         = $102,000 - $12,000

                         = $90,000

Hence, the required free cash flow = $90,000

decent

Explanation: