Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $370,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B Selling Price $ 24.00 per pound $ 18.00 per pound per $ 30.00 gallon Quarterly Output 13, 800 pounds 21,500 pounds 5,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product A B Additional Processing Costs $ 81,150 $117, 125 $ 52,900 Selling Price $29.50 per pound $24.50 per pound $38.50 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter "disadvantages" as a negative value.) Product A Product B Product C Financial advantage (disadvantage) of further processing Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? Product A Product B Product C Sell at split-off point? Process further? Apex Company prepared the statement of cash flows for the current year that is shown below: Apex Company Statement of Cash Flows-Indirect Method Operating activities: Net income $ 41,000 Adjustments to convert net income to cash basis: Depreciation $ 21,700 Increase in accounts receivable (60,500) Increase in inventory (25, 000) Decrease in prepaid expenses 10,600 Increase in accounts payable 53,900 Decrease in accrued liabilities (10,300) Increase in income taxes payable 4,700 (4,900) Net cash provided by (used in operating activities 36,100 Investing activities: Proceeds from the sale of equipment 15,000 Loan to Thomas Company (40,200) Additions to plant and equipment (122, 000) Net cash provided by (used in) investing activities (147, 200) Financing activities: Increase in bonds payable 89,900 Increase in common stock 38,300 Cash dividends (29,700) Net cash provided by (used in) financing activities 98,500 Net decrease in cash and cash equivalents (12,600) Beginning cash and cash equivalents 28,000 Ending cash and cash equivalents $ 15,400 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash flow