P4-6 Finding operating and free cash flows Consider the following summary of Summer Breeze Corporation's financial statements. Summer Breeze Corporation Balance Sheets December 31 Assets 2015 2014 Cash $ 2.000 $ 1,500 Marketable securities 2,400 1,800 Accounts receivable 2,200 2,000 Inventories 3,000 2.900 Total current assets $ 9,600 $ 8,200 Gross fixed assets $30.900 $29,500 Less: Accumulated depreciation 16,300 14,700 Net fixed assets $14,600 $14,800 Total assets $24.200 $23,000 Liabilities and stockholders' cquity Accounts payable $ 1,700 $ 1,600 Notes payable 3,400 2.800 Accruals 100 200 Total current liabilities $ 5,200 $ 4,600 Long-term debt 5,000 5,000 Total liabilities $ 10,200 $ 9,600 Common stock $10,000 $10,000 Retained earnings 4,000 3,400 Total stockholders' equity $14,000 $13.400 Total liabilities and stockholders" equity $24.200 $23.000 2 P4-5 Classifying inflows and outflows of cash Classify each of the following items as an inflow (l) or an outflow (O) of cash, or as neither (N). Item Change (S) Item Cash +150 Cash dividends Accounts payable +1,100 Accounts receivable Notes payable - 530 Inventory Fixed assets +550 Repurchase of stock Sale of stock +950 Long-term debt Depreciation 110 Net profit Change (S) +540 - 460 - 160 +475 -1.890 +380