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. \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Company Name } \\ \hline \multicolumn{6}{|c|}{ Statement of Cash Flow - Indirect Method } \\ \hline \multicolumn{6}{|l|}{ Date } \\ \hline \multicolumn{6}{|c|}{ Cash Flows form Operating Activities } \\ \hline & Net Income & & & $ & 19,000 \\ \hline \multicolumn{6}{|c|}{ Adjustments to reconcile net income to net cash } \\ \hline \multicolumn{6}{|c|}{ provided by Operating Activities } \\ \hline & Depreciation Expense & $ & 8,100 & & \\ \hline & Loss on Disposal of Plant Asset & & 1,300 & & \\ \hline & Decrease in Accounts Receivable & & 6,900 & & \\ \hline & Increase in Inventory & & (4,000) & & \\ \hline & Increase in Accounts Payable & & (2,000) & & \\ \hline & Net Cash Provided by Operating Activities & & & & 10,300 \\ \hline \multicolumn{6}{|c|}{ Cash Flows form Investing Activities } \\ \hline & Sale of Investments & $ & 1,100 & & \\ \hline & Sale of Equipment & & - & & \\ \hline & Purchase of Equipment & & (19,000) & & \\ \hline & Net Cash Used by Investing Activities & & & & (17,900) \\ \hline \multicolumn{6}{|c|}{ Cash Flows form Financing Activities } \\ \hline & Issuance of Stocks & $ & 10,000 & & \\ \hline & Payment of Long-Term Note Payable & & (5,000) & & \\ \hline & Payment of Cash Dividends & & (9,000) & & \\ \hline & Net Cash Provided by Financing Activities & & & & (4,000) \\ \hline \multicolumn{2}{|r|}{ Net Increase (Decrease) in Cash } & & & $ & 7,400 \\ \hline \multirow[t]{2}{*}{ Add: } & Cash at the Beginning of Period & & & & 10,000 \\ \hline & Cash at the End of Period & & & $ & 17,400 \\ \hline \multicolumn{6}{|c|}{ Noncash Investing and Financing Activities } \\ \hline & Issuance of Bonds Payable to Purchase Land & & & $ & - \\ \hline \end{tabular}