Help Save & Exit Submit 5 Mary Walker, president of Rusco Company, considers $21,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $16,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker Rusco Company Comparative Balance Sheet at July 311 0.75 points Assets eBook Current assets Cash Accounts Receivable Inventory Prepaid expenses Total current assets Long-term investments Plant and equipment Less accumulated depreciation Het plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds Fayable Total liabilition Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Ruaco Company This Year Last Year $16,000 221,400 $34,200 211,300 250,900 2,700 496,000 196,600 16,200 458,300 93,000 125,000 862.000 751,000 210,500 190,300 51,500 540,700 $1,240,500 $1,144,000 $231,100 8,100 $175,200 15,200 42,800 39,500 282,000 229,900 203,000 103,000 485,000 331,900 612,500 605,000 143,000 207,100 755,500 12,100 $1,240,500 $1,144,000 5 ts eBook Sales Cost of goods sold Gross margin Rusco Company Income Statement For This Year Ended July 31 Selling and administrative expenses Net operating income Nonoperating items Gain on sale of investments Loss on sale of equipment Income before taxes. Income taxes $ 20,500 (6,200) $ 820,000 512,500 307,500 219,350 88,150 Net income ferences The following additional information is available for this year. a. The company declared and paid a cash dividend. 14,300 102,450 30,730 $ 71,720 b. Equipment was sold during the year for $44,800. The equipment originally cost $92,000 and had accumulated depreciation $41,000. c. Long-term investments that cost $32,000 were sold during the year for $52,500. d. The company did not retire any bonds payable or repurchase any of its common stock. Required: 1. Using the indirect method, compute the net cash provided by/used in operating activities for this year. 2. Prepare a statement of cash flows for this year. 3. Compute free cash flow for this year. ok inces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the indirect method, compute the net cash provided by/used in operating activities for this year. (List any deduction in cash and cash outflows as negative amounts.) Rusco Company Statement of Cash Flows-Indirect Method (partial) $ 0 Required 2> Required 1 Required 2 Required 3 5 5 Prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.) Operating activities: Rusco Company Statement of Cash Flows For This Year Ended July 31 Investing activities: Book ferences Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents $ d. The company declared and paid a cash dividend. b. Equipment was sold during the year for $44,800. The equipment originally cost $92,000 and had accumulated depreciation of $41,000. c. Long-term investments that cost $32,000 were sold during the year for $52,500. d. The company did not retire any bonds payable or repurchase any of its common stock. Required: 1. Using the indirect method, compute the net cash provided by/used in operating activities for this year. 2. Prepare a statement of cash flows for this year. 3. Compute free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute free cash flow for this year. (Negative amount should be indicated by a minus sign.) Free cash flow