4 points LO 5 Skigged Mary Walker, president of Rusco Company, considers $39,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $34,000 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. Rusco Company Comparative salance Sheet at July 31 Book Print Assets Current assets: Cash Accounts able Inventory Prepaid expenses Total current assets Long-term investments Plant and equipment Less accumulated depreciation net plant and equipment Total assets Liabilities and Stockholders' equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds Payable Total liabilities Stockholders' equity: Connon stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Rusco Company Income Statement For this year ended July 31 This year Last year $ 34,000 $ 11,800 245,500 234,700 257,100 207,400 20,300 37,800 563,000 335,700 147,000 215,000 898,000 759,000 219,500 191,700 678,500 373,300 $ 1,393,500 $ 250,900 9,900 $ 1,324,000 $ 178,800 18,800 57,200 48,500 318,000 248,100 257,000 138,000 375,000 384,100 747,300 595,000 71,000 818,100 244,900 939,900 $ 1,393,500 $ 1,324,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating Incone Nonoperating Stens: Gain on sale of investments Loss on sale of equipment Incone before taxes Income taxes Net incon $ 1,180,000 737,500 442,500 315,850 128,810 $ 29,500 (9,800) 19,700 148,350 43,870 The following additional Information is avaliable for this year. a. The company declared and paid a cash dividend. $ 102,880 b. Equipment was sold during the year for $59,200. The equipment originally cost $128,000 and had accumulated depreciation of $59,000. c. Long-term investments that cost $68,000 were sold during the year for $97,500. 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 3 Using the indirect method, compute the net cash provided by/used in operating activities for this year. (List any deduction In cash and cash outflows as negative amounts.) Rusco Company Statement of Cash Flows-Indirect Method (partial) < Required 1 Required 2 > 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 3 Prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.) Operating activities: Rusco Company Statement of Cash Flows For This Year Ended July 31 Investing activities: Financing activities: Beginning cash and cash equivalents Endling cash and cash equivalents < Required 1 Required 3 > 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 Requilled 3 Compute free cash flow for this year. (Negative amount should be indicated by a minus sign.) Free cash flow < Required 2 Required 3 >