EXERCISE 15-3 Calculating Free Cash Flow L015-3 Apex Company prepared the statement of cash flows for the current year that is shown below Apet Company Statement of Cash Flows-Indirect Method Operating activities Net income $ 40,000 Adjustments to convert net income to cash basis: Depreciation $ 22,000 Increase in accounts receivable (60.000) Increase in inventory (25.000) Decrease in prepaid expenses 9,000 Increase in accounts payable 55.000 Decrease in accrued liabilities (12,000) Increase in income taxes payable 5.000 (6.000) Net cash provided by (used in) operating activities 34,000 Tuvesting activities Proceeds from the sale of equipment 14,000 Loan to Thomas Company (40,000) Additions to plant and equipment (110,000) Net cash provided by (used in) investing activities (136,000) Financing activities Increase in bonds payable 90,000 Increase in common stock 40.000 Cush dividends (30,000) Net cash provided by (used in) financing activities 100,000 Net decrease in cash and cash equivalents (2.000) Beginning cash and cash equivalents 27,000 Ending cash and cash equivalents $ 25,000 Required: Compute Apex Company's free cash flow for the current year