Q 5.23:

Jonathan has been doing calculations to determine a missing component. So far he has found the free cash flow, the dividends, and the capital expenditures. What will he be able to calculate using these amounts?

• A :

  Jonathan can add the capital expenditures and the dividends to the free cash flow in order to determine the net cash provided by operating activities.

• B :

  Jonathan can add the capital expenditures and the dividends to the free cash flow in order to determine average total liabilities.

• C :

  Jonathan can subtract the capital expenditures from the dividends and the free cash flow in order to determine the net cash provided by operating activities.

• D :

  Jonathan can multiply the capital expenditures by the dividends and the free cash flow in order to determine the average current liabilities.