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 $ 41,966 Adjustments to convert net income to cash basis: Depreciation $ 26, 166 Increase in accounts receivable (66,566) Increase in inventory (26,266) Decrease in prepaid expenses 16,666 Increase in accounts payable 54,466 Decrease in accrued Liabilities (11,866) Increase in income taxes payable 5,666 (9,666) Net cash provided by (used in) operating activities 32,966 Investing activities: Proceeds from the sale of equipment 15,666 Loan to Thomas Company (46,866) Additions to plant and equipment (121,466) Net cash provided by (used in) investing activities (147,266) Financing activities: Increase in bonds payable 89,566 Increase in common stock 39,666 Cash dividends (28,966) Net cash provided by (used in) financing activities 99,666 Net decrease in cash and cash equivalents (14,766) Beginning cash and cash equivalents 28,966 Ending cash and cash equivalents $ 14.200 Requhed: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash ow The following changes took place last year in Pavolik Com pany's balance sheet accounts: . . . . . . Asset and Contra-Asset Accounts Liabilities and Stockholders Equ1ty Accounts Cash $ 36D Accounts payable $ 110 I Accounts receivable $ 40 I Accrued liabilities $ 400 Inventory :5 gen Income taxes payable 1; 45 I Prepaid expenses $ 35 I Bonds payable $ 332 I Longterm investments $ 37D Common stock $ 1600 Property, plantl and equipment 55 535I Retained earnings $ 130 I Accumulated depreciation $ 1381 D = Decrease: l = Increase. Longterm investments that cost the company $37 were sold during the year for $78 and land that cost $77 was sold for $40. In addition. the company declared and paid $34 in cash dividends during the year. Besides the sale ofland, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: $ Sales 1,500 Cost of goods sold 670 Gross margin 830 Selling and administrative 580 expenses Net operating income 250 Nonoperating items: Loss on sale of land {37? Gain on sale of investments 41 4 Income before taxes 254 Income taxes 90 Net income $ 154 The company's beginning cash balance was $160 and its ending balance was $124. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash ows for the year. Complete this question by entering your answers in the tabs below. Req ui red Req ui red 1 2 Use the indirect method to determine the net cash provided by operating activities for the year. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.) Pavolik Company Statement of Cash Flows Operating activities: Investing activities: 0 Financing activities: O 0 Beginning cash and cash equivalents Ending cash and cash equivalents 0