Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE PLEAS HELPPP, I WILL LIKE RESPONSE/ANSWER Mary Walker, president of Rusco Company, considers $47,000 to be the minimum cash balance for operating purposes. As

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

PLEASE PLEAS HELPPP, I WILL LIKE RESPONSE/ANSWER

Mary Walker, president of Rusco Company, considers $47,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $42,000 in cash was avallable at the end of this year. Since the company reported a large net ncome for the year, and also Issued both bonds and common stock, the sharp decline in cash Is puzzling to Ms. Walker. The following additional information is avallable for this year. a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $65,600. The equipment orlginally cost $144,000 and had accumulated depreclation of $67,000. c. Long-term investments that cost $84,000 were sold during the year for $117,500. 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 actlvitles 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. 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.) Complete this question by entering your answers in the tabs below. Prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.) Complete this question by entering your answers in the tabs below. Compute free cash flow for this year. (Negative amount should be indicated by a minus sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health And Safety Environment And Quality Audits A Risk-based Approach

Authors: Stephen Asbury

2nd Edition

0415508118, 978-0415508117

More Books

Students also viewed these Accounting questions