Exercise 14-3 Calculating Free Cash Flow [L014-3] 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 Adjustments to convert net income to cash basis: $40,300 Depreciation $ 21,100 (60,400) (25,000) 10,300 54,100 (10,100) 3,500 Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities 6,500 33,800 Increase in income taxes payable Net cash provided by (used in) operating activities Investing activities: Proceeds from the sale of equipment Loan to Thomas Company Additions to plant and equipment Net cash provided by (used in) investing activities Financing activities: Increase in bonds payable Increase in common stock Cash dividends Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents 15,400 (40,009) 120,300 (144,900) 88, 500 39,300 (29,900) 97,900 (13,200) 28,600 $ 15,400