ch12 exercises #2

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			$	40,000
Adjustments to convert net income to cash basis:
Depreciation	$	22,000
Increase in accounts receivable		(60,000)
Increase in inventory		(25,000)
Decrease in prepaid expenses		9,000
Increase in accounts payable		55,000
Decrease in accrued liabilities		(12,000)
Increase in income taxes payable		5,000		(6,000)
Net cash provided by operating activities				34,000
Investing activities:
Proceeds from the sale of equipment		14,000
Loan to Thomas Company		(40,000)
Additions to plant and equipment		(110,000)
Net cash used for investing activities				(136,000)
Financing activities:
Increase in bonds payable		90,000
Increase in common stock		40,000
Cash dividends		(30,000)
Net cash provided by financing activities				100,000
Net decrease in cash				(2,000)
Beginning cash balance				27,000
Ending cash balance			$	25,000

Required:

Compute Apex Companys free cash flow for the current year. (Negative amount should be indicated by a minus sign.)