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Question(s) / Instruction(s):

Suppose that Stanley Corporation produced and sold 5,200 laptop computers during 2010.  It reported $280,000 cash provided by operating activities.  In order to maintain production at 5,200 laptops, Stanley invested in $10,000 in equipment.  Stanley paid $2,000 in dividends. What is Stanley’s free cash flow?

A.            $270,000

B.            $278,000

C.            $268,000

D.            $290,000

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