Question
Do It! Review 13-3 Obermeyer Corporation issued the following statement of cash flows for 2015. OBERMEYER CORPORATION Statement of Cash FlowsIndirect Method For the Year
Do It! Review 13-3
Obermeyer Corporation issued the following statement of cash flows for 2015.
OBERMEYER CORPORATION
Statement of Cash FlowsIndirect Method
For the Year Ended December 31, 2015
Cash flows from operating activities
Net income
$56,480
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense
$8,990
Loss on disposal of equipment
9,450
Increase in inventory
(5,080
)
Decrease in accounts receivable
3,180
Decrease in accounts payable
(2,130
)
14,410
Net cash provided by operating activities
70,890
Cash flows from investing activities
Sale of investments
2,970
Purchase of equipment
(28,700
)
Net cash used by investing activities
(25,730
)
Cash flows from financing activities
Issuance of stock
21,640
Payment on long-term note payable
(11,850
)
Payment for dividends
(14,320
)
Net cash used by financing activities
(4,530
)
Net increase in cash
40,630
Cash at beginning of year
11,730
Cash at end of year
$52,360
(a)
Compute free cash flow for Obermeyer Corporation.
Free cash flow for Obermeyer Corporation
$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
10th Edition
1111822239, 324639767, 9781111822231, 978-0324639766
