Apex Company prepared the statement of cash flows for the current year that is shown below:...
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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 activities: Net income $ 40,400 Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable Increase in inventory $ 21,500 (60,200) (25,800) Decrease in prepaid expenses 10,000 Increase in accounts payable 53,100 Decrease in accrued liabilities (11,300) Increase in income taxes payable 3,100 Net cash provided by (used in) operating activities (9,600) 30,800 Investing activities: Proceeds from the sale of equipment 15,300 Loan to Thomas Company (41,100) Additions to plant and equipment (120,900) Net cash provided by (used in) investing activities (146,700) Financing activities: Increase in bonds payable 89,100 Increase in common stock 38,800 Beginning cash and cash equivalents Cash dividends Net cash provided by (used in) financing activities Net decrease in 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 (28,200) 99,700 (16,200) 28,700 $ 12,500 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 $ 40,400 Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable Increase in inventory $ 21,500 (60,200) (25,800) Decrease in prepaid expenses 10,000 Increase in accounts payable 53,100 Decrease in accrued liabilities (11,300) Increase in income taxes payable 3,100 Net cash provided by (used in) operating activities (9,600) 30,800 Investing activities: Proceeds from the sale of equipment 15,300 Loan to Thomas Company (41,100) Additions to plant and equipment (120,900) Net cash provided by (used in) investing activities (146,700) Financing activities: Increase in bonds payable 89,100 Increase in common stock 38,800 Beginning cash and cash equivalents Cash dividends Net cash provided by (used in) financing activities Net decrease in 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 (28,200) 99,700 (16,200) 28,700 $ 12,500
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To compute Apex Companys free cash flow well use the formula Free Cash Flow Net Ca... View the full answer
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