Mary Walker, president of Rusco Company, considers $28,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $23,000 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 Assets Current assets: Cash Rusco Company Comparative Balance Sheet at July 31 This Year Last Year Accounts Receivable Inventory Prepaid expenses Total current assets Long-term investments Plant and equipment Less accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds Payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $23,000 $ 42,600 231,200 257,200 12,600 220,400 200,800 24,600 $24,000 488,400 114,000 160,000 876,000 758,000 214,000 192,400 662,000 565,600 $ 1,300,000 $1,214,000 $238,800 $176,600 8,00 16,600 48,4 43,000 296,000 236,200 224,000 116,000 $20,000 352,20 665,000 640,000 115,000 221,800 780,000 861,800 $1,300,000 $1,214,000 Rusco Company Income Statement For This Year Ended July 31 Sales $960,000 Cost of goods sold 600,000 Gross margin 360,000 Selling and administrative expenses Net operating income Nonoperating items: 256,800 103,200 Gain on sale of investments Loss on sale of equipment Incone before taxes Income taxes Net income $24,000 (7,600) 16,400 119,600 $83,760 The following additional information is available 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 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 $50,400. The equipment originally cost $106,000 and had accumulated depreciation of $48,000. c. Long-term investments that cost $46,000 were sold during the year for $70,000. 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 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) Required 2 > 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. 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 Prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.) Rusco Company Statement of Cash Flows For This Year Ended July 31 Operating activities: Investing activities Financing activities Beginning cash and cash equivalents Ending cash and cash equivalents