For the year just completed, Hanna Company had net income of $59,500. Balances in the companys current asset and current liability accounts at the beginning and end of the year were as follows:

December 31 End of YearBeginning of YearCurrent assets: Cash and cash equivalents$ 63,000$ 85,000Accounts receivable$ 162,000$ 190,000Inventory$ 436,000$ 343,000Prepaid expenses$ 11,000$ 14,000Current liabilities: Accounts payable$ 370,000$ 388,000Accrued liabilities$ 8,000$ 12,500Income taxes payable$ 35,000$ 26,000

The Accumulated Depreciation account had total credits of $56,000 during the year. Hanna Company did not record any gains or losses during the year.

Required:

Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash outflows as negative amounts.)

2.

\begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Hanna Company } & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Apex Company prepared the statement of cash flows for the current year that is shown below: Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus s