Mary Walker, president of Rusco Company, considers $31,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $26,000 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 $ 26,eee 235,488 259,900 14,700 536,eee 123, eee 882,eee 215, 5ea 666,500 $1,325,500 $ 46,200 224,300 282, 6ee 28,200 501,300 175, eee 761, eee 193,300 567,7ee $1,244, eee Assets Current assets: Cash 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 $ $ 242,100 9,102 50,800 302, eee 233,eee 535, eee 177,200 17,2ee 44,580 238,900 122, eee 360,900 687,500 103,eee 790,5e2 $1,325,500 655, eee 228,100 883,180 $1,244, eee Rusco Company Income statement For This Year Ended July 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments $25,500 Loss on sale of equipment (8,200) Income before taxes Income taxes Net income $1,020, eee 637,5ee 382,5ee 272,850 189,650 17,300 126,950 38, e3e 88,920 $ The following additional Information is available for this year. 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 $52,800. The equipment originally cost $112,000 and had accumulated depreciation of $51,000. c. Long-term Investments that cost $52,000 were sold during the year for $77,500. 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 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 1 Required 2 > a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $52,800. The equipment originally cost $112,000 and had accumulated depreciation of $51,000. c. Long-term Investments that cost $52,000 were sold during the year for $77,500. 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 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 (Required 1 Required 3 > Rusco Company Income Statement For This Year Ended July 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments $25,500 Loss on sale of equipment (8,200) Income before taxes Income taxes Net income $1,02e, eee 637,5ee 382,500 272,850 109,650 17,300 126,95 38, e3e 88,928 $ 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 $52,800. The equipment originally cost $112,000 and had accumulated depreciation of $51,000. c. Long-term Investments that cost $52,000 were sold during the year for $77,500. 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