Midwest Co reported the following items in the most recent year Net income $40,000 Dividends paid 5,000 Increase in accounts receivable 10,000 Increase in accounts payable 7,000 Purchase of equipment 8,000 Depreciation expense 4,000 Issue of notes payable for cash 20,000 (a) Calculate net cash prov...

a Operating Activities Net income 40000 Depreciation expense 4000 Incre ...

Midwest Co. reported the following items in the most recent year: Net income .................................................. $40,000 Dividends paid

Question:

Midwest Co. reported the following items in the most recent year:
Net income .................................................. $40,000
Dividends paid ................................................. 5,000
Increase in ............................. 10,000
Increase in ................................ 7,000
Purchase of equipment ....................................... 8,000
Depreciation expense ......................................... 4,000
Issue of notes payable for cash ............................ 20,000
(a) Calculate net cash provided (used) by operating activities, the net change in cash during the year, and free cash flow. Dividends paid are treated as financing activities. Midwest uses the indirect method for its Statement of Cash Flows.
(b) Assuming Midwest had 100,000 common shares outstanding for the entire year, calculate cash flow per share to be included in the if Midwest follows IFRS and chooses to disclose the ratio.
(c) How would your answer to part (b) change if Midwest follows ASPE?
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