Brief Exercise 1-2

Larkspur, Inc. reported net cash provided by operating activities of $397,400, net cash used by investing activities of $257,600, and net cash provided by financing activities of $76,100. In addition, cash spent for capital assets during the period was $193,900. No dividends were paid. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Free cash flow $

2 -

Brief Exercise 2

The T-accounts for Equipment and the related Accumulated DepreciationEquipment for Splish Brothers Inc. at the end of 2017 are shown here.

Equipment
Beg. bal.	189,920	Disposals	52,228
Acquisitions	98,758
End. bal.	236,450
Accum. Depr.Equipment
Disposals	12,107	Beg. bal.	105,643
		Depr. exp.	28,488
		End. bal.	122,024

In addition, Splish Brothers Inc.s income statement reported a loss on the disposal of plant assets of $8,309. What amount was reported on the statement of cash flows as cash flow from sale of equipment? (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Cash flow from sale of equipment