Free Cash Flow?

Problem 12-7A (Part Level Submission) Presented below are the financial statements of Tamarisk Company. Tamarisk Company Comparative Balance Sheets December 31 Assets 2017 Cash $ 66,150 Accounts receivable 37,800 Inventory 52,920 Property, plant, and equipment 113,400 Accumulated depreciation (60,480 ) Total $209,790 2016 $ 37,800 26,460 37,800 147,420 (45,360 ) $204,120 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 35,910 13,230 32,130 34,020 94,500 $209,790 $ 28,350 15,120 62,370 26,460 71,820 $204,120 $457,380 330,750 126,630 Tamarisk Company Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Selling expenses $34,020 Administrative expenses 11,340 Income from operations Interest expense Income before income taxes 45,360 81,270 5,670 75,600 15,120 Income tax expense Net income $ 60,480 Additional data: 1. Depreciation expense was $33,075. 2. Dividends declared and paid were $37,800. 3. During the year equipment was sold for $16,065 cash. This equipment cost $34,020 originally and had accumulated depreciation of $17,955 at the time of sale. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Tamarisk Company Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income 60480 Adjustments to reconcile net income to Net Cash Provided by Operating Activities - Depreciation Expense 4 33075 Increase in Accounts Receivable 11340 Increase in Inventory Increase in Accounts Payable Decrease in Income Taxes Payable 2285 Net Cash Provided by Operating Activities 72765 Cash Flows from Investing Activities Sale of Equipment A Cash Flows from Financing Activities - Redemption of Bonds -30240 Issuance of Common Stock 7560 Payment of Dividends -37800 Net Cash used by Financing Activities -60480 Net Increase in Cash 28350 Cash at Beginning of Period 37800 Cash at End of Period 66150 (b) Compute free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Free cash flow