Check my work Mary Walker, president of Rusco Company, considers $37,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $32,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Last Year Rusco Company Comparative Balance Sheet at July 31 This Year Assets Current assets: Cash $ 32,000 Accounts Receivable 243,800 Inventory 265,300 Prepaid expenses 18,900 Total current assets 560,000 Long-term investments 141,000 Plant and equipment 894,000 Less accumulated depreciation 218,500 Net plant and equipment 675,500 Total assets $1,376,500 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 248,700 Accrued liabilities 9,700 Income taxes payable 55,600 Total current liabilities 314,000 Bonds Payable 251,000 Total liabilities 565,000 Stockholders' equity: Common stock 732,500 Retained earnings 79,000 Total stockholders' equity 811,500 Total liabilities and stockholders' $1,376,500 equity $ 53,400 232,100 206,200 35,400 527,100 205,000 767,000 195,100 571,900 $1,304,000 $ 178,400 18,400 47,500 244,300 134,000 378,300 685,000 240, 700 925,700 $1,304,000 Rusco Company Income Statement For This Year Ended July 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments $28,500 Loss on sale of equipment (9,400) Income before taxes Income taxes Net income $1,140,000 712,500 427,500 304, 950 122,550 19, 100 141,650 42,410 99,240 The following additional information is available for this year. a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $57,600. The equipment originally cost $124,000 and had accumulated depreciation of $57,000. c. Long-term investments that cost $64,000 were sold during the year for $92,500. d. The company did not retire any bonds payable or repurchase any of its common stock. Required: 1. Using the indirect method, compute the net cash provided by/used in operating activities for this year. 2. Prepare a statement of cash flows for this year. 3. Compute free cash flow for this year. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 | Required 2 Required 3 Using the indirect method, compute the net cash provided by/used in operating activities for this year. (List any deduction in cash and cash outflows as negative amounts.) Rusco Company Statement of Cash FlowsIndirect Method (partial) Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.) Rusco Company Statement of Cash Flows For This Year Ended July 31 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents The following additional information is available for this year. a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $57,600. The equipment originally cost $124,000 and had accumulated depreciation of $57,000. c. Long-term investments that cost $64,000 were sold during the year for $92,500. d. The company did not retire any bonds payable or repurchase any of its common stock. Required: 1. Using the indirect method, compute the net cash provided by/used in operating activities for this year. 2. Prepare a statement of cash flows for this year. 3. Compute free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required 21 Required 3 Compute free cash flow for this year. (Negative amount should be indicated by a minus sign.) Free cash flow Required 2 Required 3 >