Mary Walker, president of Rusco Company, considers $$37,000$ to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $$32,000$ 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 $31$

This Year Last Year

Assets

Current assets:

Cash and cash equivalents $ $32,000$ $ $53,400$

Accounts receivable $243,800232,100$

Inventory $265,300206,200$

Prepaid expenses $18,90035,400$

Total current assets $560,000527,100$

Long$-$term investments $141,000205,000$

Plant and equipment $894,000767,000$

Less accumulated depreciation $218,500195,100$

Net plant and equipment $675,500571,900$

Total assets $ $1,376,500$ $ $1,304,000$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $248,700$ $ $178,400$

Accrued liabilities $9,70018,400$

Income taxes payable $55,60047,500$

Total current liabilities $314,000244,300$

Bonds Payable $251,000134,000$

Total liabilities $565,000378,300$

Stockholders$$ equity:

Common stock $732,500685,000$

Retained earnings $79,000240,700$

Total stockholders' equity $811,500925,700$

Total liabilities and stockholders' equity $ $1,376,500$ $ $1,304,000$

Rusco Company

Income Statement

For This Year Ended July $31$

Sales $ $1,140,000$

Cost of goods sold $712,500$

Gross margin $427,500$

Selling and administrative expenses $304,950$

Net operating income $122,550$

Nonoperating items:

Gain on sale of investments $ $28,500$

Loss on sale of equipment $(9,400)19,100$

Income before taxes $141,650$

Income taxes $42,410$

Net income $ $99,240$

The following additional information is available for this year.

The company declared and paid a cash dividend.

Equipment was sold during the year for $$57,600.$ The equipment originally cost $$124,000$ and had accumulated depreciation of $$57,000.$

Long$-$term investments that cost $$64,000$ were sold during the year for $$92,500.$

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. please make sure this is right

$3.$ Compute free cash flow for this year.