Mary Walker, president of Rusco Company, considers $26,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $21,000 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 Last Year Runco Company Comparative Balance sheet at July 31 This Year Assets Current ansett Cash 21,000 Accounts Receivable 228,400 Inventory 255,400 Prepaid expenses 11,200 Total current asta 516,000 Long-term investments 109,000 Dlant and equipment 072,000 Les accumulated depreciation 213.000 Met plant and equipment 659,000 Total sets $1,200,000 Liabilities and stockholders Equity Current liabilities Accounts payable 236,600 Acorood liabilition 8.600 Income taxes payable 46,800 Total current liabilities 292,000 Bonds Payable 218,000 Total liabilities 510.000 $ 40,200 217,600 199,600 22,200 479, 800 150,000 756,000 191.000 564200 31,194,000 176,200 16,200 42.000 234.400 112.000 346,400 Stockholders equity Common stock Metained earnings Total stockholders equity Total liabilities and stockholders equity 650,000 123,000 273.000 $1,283,000 30,000 217,500 842.600 $1,194,000 Bunca Company Income Statement Tom This Year Ended Jay 3 Salon Cont of wood sold Groenmagin Selling and administrative expande met operating income Hooperating Items Canon sale of Lnvestment $20.000 To on sale of equipment 02-2003 Income before taxe Income taxes Net Income $920.000 575.000 3457000 246.100 9900 15.00 X700 300 20 The following additional Information is available for this year n. The company declared and paid a cash dividend b. Equipment was sold during the year for $48.800 The equipment orainally cost $102.000 and had accumulated depreciation of The following additional information is available for this year, a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $48,800. The equipment originally cost $102.000 and had accumulated depreciation of $46,000 c. Long-term investments that cost $42,000 were sold during the year for $65.000 d. The company did not retire any bonds payable or repurchase any of its common stock. Required Uning 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 yeni Complete this question by entering your answers in the tabs below. Menuired 2 Heid Using the indirect method, compute the net cash provided by used in operating activities for this year any deduction in Museo Company
