Many companies use free cash flow to estimate the amount of cash that would be available for unexpected opportunities.TrueYour answer is correct.False10.Investors who want to know the amount of cash a company has available for new opportunities, such as expanding into a new sales region, should analyze the company's free cash flow.TrueYour answer is correct.False11.The contribution of equipment by a stockholder in exchange for common stock is an example of ________.A.financing activityB.non-cash investing and financing activityYour answer is correct.C.investing activityD.operating activity12.Milford Lighting Supply expects the following for 2016:
Net cash provided by operating activities of $281,000Net cash provided by financing activities of $65,000Net cash provided by investing activities of $85,000Cash dividends paid to stockholders of $24,000Milford expects to spend $157,000 to modernize its showroom.How much free cash flow does Milford expect for 2016?13.In preparing a statement of cash flows using the indirect method, the Depreciation Expense ________.14.The non-cash investing and financing activities section of the statement of cash flows appears as a separate schedule of the statement of cash flows or in the notes to the financial statements.TrueYour answer is correct.False15.The three major categories included on the statement of cash flows are ________.
Answer D. investing, operating, and financing activities
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