111 Saved He Problem 14-13 Prepare and Interpret a Statement of Cash Flows; Free Cash Flow (LO14-1, LC14-2, L014- 3) Mary Walker, president of Rusco Company, considers $49,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $44.000 in cash was available at the end of this year. Since the company reported a large net Income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker Last Year Rusco Company Comparative Balance sheet at July 31 This Year Naseta Current ansetar Cash $ 44,000 Accounts Receivable 260,600 Inventory 276,100 Prepaid expenses 27.300 Total current assets 600,000 Long-term investments 127.000 Plant and equipment 918,000 Tess accumulated depreciation 224,500 Net plant and equipment 693.500 Total aseta $1,478,500 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 261,900 Accrued liabilities 10.900 Income tax payable 65,200 Total current liabilities 338.000 Bonds Payable 287,000 Total liabilities 625,000 Stockholders' equity Common stock 822,500 retained earning 31,000 Total stockholders' equity 85,500 Total liabilities and stockholders' equity $1.478,500 $ 67,800 247,700 213,400 49,800 $78,700 265,000 779,000 198.700 500.300 $1,424,000 $ 100,000 20.000 53,500 255, 100 158,000 413.100 745,000 365.000 1.010,900 $1.426.000 sco Company In statement MacBook AM H Runco Company Incon Statement For This Year Ended July 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments $ 34,500 Loss on sale of equipment (11,800) Income before taxes Income taxes Set income $1,380,000 862,500 517,500 369,150 148,350 22,700 171,050 51,170 $ 119,880 The following additional Information is available for this year. The company declared and paid a cash dividend. b. Equipment was sold during the year for $67,200. The equipment originally cost $148,000 and had accumulated depreciation of $69,000 c Long-term investments that cost $88,000 were sold during the year for $122,500 d. The company did not retire any bonds payable or repurchase any of its common stock Required: 1. Using the Indirect method, compute the net cash provided by/used in operating activities for this year. 2. Prepare a statement of cash flows for this year. 3. Compute free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Using the indirect method, compute the net cash provided by used in operating activities for this year. (List any deduction in MACBOOK E Compute free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the indirect method, compute the net cash provided by/used in operating activitie cash and cash outflows as negative amounts.) Rusco Company Statement of Cash Flows-Indirect Method (partial) Required 2 > a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $67,200. The equipment original $69,000. c. Long-term investments that cost $68,000 were sold during the year for $ d. The company did not retire any bonds payable or repurchase any of its ce Required: 1. Using the indirect method, compute the net cash provided by/used in opera 2. Prepare a statement of cash flows for this year. 3. Compute free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute free cash flow for this year. (Negative amount should be indicated by a m Free cash flow