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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 $ 40,100 Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable $ 20,400 (60,300) Increase in inventory (25,600) Decrease in prepaid expenses 10,700 Increase in accounts payable 54,300 Decrease in accrued liabilities (11,200) Increase in income taxes payable 4,400 (7,300) Net cash provided by (used in) operating activities 32,800 Investing activities: Proceeds from the sale of equipment 15,100 Loan to Thomas Company (40,000) Additions to plant and equipment (121,700) Net cash provided by (used in) investing activities Financing activities: (146,600) Increase in bonds payable 89,000 Increase in common stock 38,300 Cash dividends Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be Indicated by a minus sign.) Free cash flow (29,300) 98,000 (15,800) 27,700 $ 11,900
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