Answered step by step
Verified Expert Solution
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 | $ 41,300 | |
Adjustments to convert net income to cash basis: | ||
Depreciation | $ 20,100 | |
Increase in accounts receivable | (61,400) | |
Increase in inventory | (26,400) | |
Decrease in prepaid expenses | 10,300 | |
Increase in accounts payable | 54,800 | |
Decrease in accrued liabilities | (11,800) | |
Increase in income taxes payable | 3,300 | (11,100) |
Net cash provided by (used in) operating activities | 30,200 | |
Investing activities: | ||
Proceeds from the sale of equipment | 15,300 | |
Loan to Thomas Company | (40,700) | |
Additions to plant and equipment | (121,500) | |
Net cash provided by (used in) investing activities | (146,900) | |
Financing activities: | ||
Increase in bonds payable | 88,900 | |
Increase in common stock | 38,200 | |
Cash dividends | (28,400) | |
Net cash provided by (used in) financing activities | 98,700 | |
Net decrease in cash and cash equivalents | (18,000) | |
Beginning cash and cash equivalents | 27,600 | |
Ending cash and cash equivalents | $ 9,600 |
Required:
Compute Apex Companys free cash flow for the current year. (Negative amount should be indicated by a minus sign.)
Free cash flow:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started