Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Apex Company prepared the statement of cash flows for the current year that is shown below: Apex Company Statement of Cash FlowsIndirect Method Operating activities:

Apex Company prepared the statement of cash flows for the current year that is shown below:

Apex Company Statement of Cash FlowsIndirect Method
Operating activities:
Net income $ 41,400
Adjustments to convert net income to cash basis:
Depreciation $ 21,400
Increase in accounts receivable (61,700)
Increase in inventory (26,400)
Decrease in prepaid expenses 10,700
Increase in accounts payable 53,900
Decrease in accrued liabilities (11,300)
Increase in income taxes payable 5,000 (8,400)
Net cash provided by (used in) operating activities 33,000
Investing activities:
Proceeds from the sale of equipment 15,400
Loan to Thomas Company (41,000)
Additions to plant and equipment (121,600)
Net cash provided by (used in) investing activities (147,200)
Financing activities:
Increase in bonds payable 89,500
Increase in common stock 39,700
Cash dividends (29,500)
Net cash provided by (used in) financing activities 99,700
Net decrease in cash and cash equivalents (14,500)
Beginning cash and cash equivalents 28,600
Ending cash and cash equivalents $ 14,100

Required:

Compute Apex Companys free cash flow for the current year. (Negative amount should be indicated by a minus sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Management Accounting With Myaccountinglab And

Authors: Alnoor Bhimani, Charles T. Horngren, Gary L. Sundem, William O. Stratton, Jeff Schatzberg, Dave Burgstahler

1st Edition

1292178116, 978-1292178110

More Books

Students also viewed these Accounting questions