Operating Activities Net Income Depreciation and amortization $31,386 7,388 Increase in accounts payable 7,652 Increase in accruals 7,821 Increase in accounts receivable (17,838) Increase in inventories (3,462) Net cash provided by operating activities $32,947 Investing Activities Additions to property, plant, and equip. (32,117) Net cash used in investing activities (32,117) Financing Activities Increase in notes payable $2,500 Increase in long-term debt 12,350 Increase in common stock 10,000 Payment of common dividends (12,554) Net cash provided by financing activities $12,295 Summary Net increase/decrease in cash Cash balance at beg. of the year Cash balance at the end of the year $13,125 89,725 $102,850 C. Calculate the change in net operationg working capital and the 2014 free cash flow. A NOWC = A Curr. Assets $ $ 34,425 18,952 A Accts. Pay. $ 7,652 A Accruals 7,821 Free Cash Flow FCF = EBIT (1-T) + Depr. Cap Ex A NOWC $36,531 $7,388 32,117 $18,952 $7.150