Question: Hello, #3 isn't adding up for me. When I calculate the way it tells me, I get a different number. For instance, the explanation says
Hello, #3 isn't adding up for me. When I calculate the way it tells me, I get a different number. For instance, the explanation says to subtract 750,000 from 209,000 then subtract that from 54,000 then subtract again from 38,000 and it should leave 559,000. However, the number I end up with is 658,000. Which means my second answer will be different as well. Can someone please recalculate and let me know which answer is correct mine or the one presented on the document? If the on presented on the document is correct, what am I doing wrong?
3. Simon Corporation engaged in the following cash transactions during 2021: Sale of land and building 209,000 Purchase of treasury stock 35,000 Purchase of land 38,000 Payment of cash dividend 105,000 Purchase of equipment 54,000 Issuance of common stock 150,000 Retirement of bonds 97,500 Required: What is Simon's free cash flow, assuming that it reported net cash provided by operating activities of $750,000? A: Net cash provided by operating activities: $750,000 Investing: Sale of land and building: $209,000 Purchase of equipment: -$54,000 Purchase of land: -$38,000 Financing: Payment of Dividends: -$105,000 Purchase of Treasury stock: -$35,000 Issuance of Common Stock: $150,000 Retirement of bonds: -$97,500 Free Cash Flow: $779,500Step by step explanation: The free cash flow of Simon Corporation can be calculated by taking the net cash provided by operating activities and subtracting all investing and financing activities. First, the net cash provided by operating activities is S?50,000. Nest, subtract the investing activities which include the sale of land and building for $200,000, purchase of equipment for 554,000, and purchase of land for $35,000. This leaves us with a total of $550,000. Finallv, subtract the financing activities which include pavment of dividends for 105,000, purchase of treasury,r stock for $35,000, issuance of common stock for $150,000, and retirement of bonds for $0?',500. This brings us to a total of S??0,500 for the free cash flow of Simon Corporation. Question: Highlighted in document Answer: Net cash provided by operating activities: $750,000 Investing: Sale of land and building: $209,000 Purchase of equipment: -$54,000 Purchase of land: -$38,000 Financing: Payment of Dividends: -$105,000 Purchase of Treasury stock: -$35,000 Issuance of Common Stock: $150,000 Retirement of bonds: -$97,500 Free Cash Flow: $779,500
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