Suppose that maroney corporation produced and sold 4,800 laptop computers during the year. it reported $140,000 cash provided by operating activities. in order to maintain production at 4,800 laptops, maroney paid $35,000 for equipment. maroney paid $10,000 in dividends and it paid a $25,000 note payable. shortly before year-end, maroney received $20,000 by issuing additional shares of its stock. what is maroney’s free cash flow? group of answer choices $70,000 $95,000 $115,000 $130,000 $90,000

$95,000

Explanation:

The computation of the free cash flow is shown below:

= Operating activities - capital expenditure - dividend paid

= $140,000 - $35,000 - $10,000

= $95,000

The dividend is also a part of the capital expenditure, that's why we deduct it.

The notes payable is already included in the operating activity, so no treatment is done, and the additional shares are also not be considered in the computation part. Hence, ignored it.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.