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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

$

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