Assumption:
ABC Corporation has the following partial Statement of Cash Flows.
Actions to take:
1. Determine the Free Cash Flows.
2. Explain why free cash often provides better information than "Net Cash Provided by Operating Activities.
	Company Name
	Statement of Cash Flow - Indirect Method
	Date
	Cash Flows form Operating Activities
		Net Income					$ 19,000
		Adjustments to reconcile net income to net cash
		provided by Operating Activities
			Depreciation Expense		$ 8,100
			Loss on Disposal of Plant Asset	1,300
			Decrease in Accounts Receivable	6,900
			Increase in Inventory		(4,000)
			Increase in Accounts Payable	(2,000)
			Net Cash Provided by Operating Activities	10,300
	Cash Flows form Investing Activities
			Sale of Investments		$ 1,100
			Sale of Equipment		-
			Purchase of Equipment		(19,000)
			Net Cash Used by Investing Activities	(17,900)
	Cash Flows form Financing Activities
			Issuance of Stocks		$ 10,000
			Payment of Long-Term Note Payable	(5,000)
			Payment of Cash Dividends	(9,000)
			Net Cash Provided by Financing Activities	(4,000)
		Net Increase (Decrease) in Cash			$ 7,400
	Add:	Cash at the Beginning of Period			10,000
		Cash at the End of Period			$ 17,400
	Noncash Investing and Financing Activities
		Issuance of Bonds Payable to Purchase Land		$ -