Mary Walker, president of Rusco Company, considers $49,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $44,000 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 Assets Current assetst $ 44,000 67,800 247,700 213,400 49,800 578,700 265,000 779,000 224,500198,700 580,300 $1,478,500 $1,424,000 Canh Accounta Receivable 260,600 276,100 27,300 608,000 177,000 918,000 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 693,500- Current liabilitiest S 261,900 10,900 65,200 338,000 180,800 20,800 Accounts payable Aocrued liabilities 53,500 255,100 Income taxes payable Total current liabilities Bonds Payable Total liabilities Stockholdere' equity 287,000158,000 413,100 625,000 822,500 745,000 Common stock Retained earninges 265,900 3100265900 853,5001.010.900 Total stockholders' equity Total liabilities and stockholders' equity $1,478,s00 $1, 424,000 Required 1 Required 2 Required 3 Using the indirect method, compute the net cash provided by/used in operating a cash and cash outflows as negative amounts.) ear. Rusco Company Statement of Cash Flows Indirect Method (partial) Required 2 Required1 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 Requined 1 Required 3 Required 1Required 2 Required 3 Compute free cash flow for this year. (Negative amount should be indicated by a minus sign.) cash flow C Required 2