What is drake free cash flow


Suppose that Drake Corporation produced and sold 5,000 laptop computers during 2010. It reported $270,000 cash provided by operating activities. In order to maintain production at 5,200 laptops, Drake invested in $8,000 in equipment. Drake paid $2,000 in dividends. What is Drake's free cash flow?

$262,000

$260,000

$268,000

$278,000

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Accounting Basics: What is drake free cash flow
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