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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 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 | $ | 41,800 | ||||
Adjustments to convert net income to cash basis: | ||||||
Depreciation | $ | 21,900 | ||||
Increase in accounts receivable | (60,100 | ) | ||||
Increase in inventory | (25,700 | ) | ||||
Decrease in prepaid expenses | 9,700 | |||||
Increase in accounts payable | 53,700 | |||||
Decrease in accrued liabilities | (10,900 | ) | ||||
Increase in income taxes payable | 4,800 | (6,600 | ) | |||
Net cash provided by (used in) operating activities | 35,200 | |||||
Investing activities: | ||||||
Proceeds from the sale of equipment | 15,000 | |||||
Loan to Thomas Company | (41,700 | ) | ||||
Additions to plant and equipment | (120,400 | ) | ||||
Net cash provided by (used in) investing activities | (147,100 | ) | ||||
Financing activities: | ||||||
Increase in bonds payable | 89,600 | |||||
Increase in common stock | 39,200 | |||||
Cash dividends | (28,500 | ) | ||||
Net cash provided by (used in) financing activities | 100,300 | |||||
Net decrease in cash and cash equivalents | (11,600 | ) | ||||
Beginning cash and cash equivalents | 27,800 | |||||
Ending cash and cash equivalents | $ | 16,200 | ||||
Required:
Compute Apex Companys free cash flow for the current year.
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