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Apex Company prepared the statement of cash flows for the current year that is shown below: Apex Company Statement of Cash Flows-Indirect Method Operating
Apex Company prepared the statement of cash flows for the current year that is shown below: Apex Company Statement of Cash Flows-Indirect Method Operating activities: Net income $ 42,000 Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable Increase in inventory $ 21,800 (61,400) (25,000) Decrease in prepaid expenses 9,200 Increase in accounts payable 53,300 Decrease in accrued liabilities (11,100) Increase in income taxes payable 4,000 Net cash provided by (used in) operating activities (9,200) 32,800 Investing activities: Proceeds from the sale of equipment 15,000 Loan to Thomas Company (41,000) Additions to plant and equipment (121,700) Net cash provided by (used in) investing activities (147,700) Financing activities: Increase in bonds payable 88,000 Increase in common stock 40,000 Cash dividends Net decrease in cash and cash equivalents (29,700) Net cash provided by (used in) financing activities Beginning cash and cash equivalents 98,300 (16,600) 28,700 Ending cash and cash equivalents $ 12,100 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash flow
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