Exercise 15-3 (Algo) Calculating Free Cash Flow (LO15-3] Apex Company prepared the statement of cash flows for the current year that is shown below: $ 40,100 $ 21,800 (61,500) (25,000) 10,900 53,500 (11,000) 3,800 (7,500) 32,600 Apex Company Statement of Cash Flows-Indirect Method Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities 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 14,200 (40,400) (120,600) (146, 800) 89,400 38,700 (29,900) 98, 200 (16,000) 28,600 $ 12,600 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash flow Assume a company had net income of $70,000 that included income tax expense of $21,000. It provided the following excerpts from its balance sheet: This Year Last Year $40,000 $53,000 $13,000 $46,000 $50,000 $11,000 Current assets: Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable $38,000 $18,000 $13,000 $44,000 $15,000 $10,000 If the credits to the company's accumulated depreciation account were $21,000, then based solely on the information provided the company's cash payments for Income taxes would be: Multiple Choice $23,000 $18,000. O O $19,000. o $24,000