Problem 13-13 (Algo) Prepare and Interpret a Statement of Cash Flows; Free Cash Flow [LO13-1, LO13-2, LO13-3] Mary Walker, president of Rusco Company. considers $26.000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $21.000 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 32 Assets Current assets: Cash $21 080 $40 . 280 Accounts Receivable 228 468 217 308 Inventory 255 480 199. 680 Prepaid expenses 22 289 Total current assets 516 080 479 809 Long-term investments 250 ,080 Plant and equipment 872, 080 756,980 Less accumulated depreciation 213 080 Net plant and equipment Total assets $ 1, 283.080 $ 1,194,086 Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 236, 608 176, 280 Accrued liabilities 8 680 136 280 Income taxes payable 46, 880 42,080 Total current liabilities 292. 980 Bonds Payable 112.060 Total liabilities 518,068 346,400 stockholders equity: Common stock 658, 080630,080 Retained earnings 123,080 217.690 Total stockholders equity 773, 080 847,608 Total liabilities and stockholders equity 5 1, 283, 080 5 1, 194,080 Rusco Company income statement HuGor this Year Ended July 31 Sales 2 928,080 cost of goods sold 575.068 345.060 miss lang and administrative expenses 246, 180 PPfatEng income 98.980 Gain on sale of investments 23.806 in Less on sale of equipment (7. 260) neeme before thy 114 .780 34. 380 5 58 . 320 The following additional information is aveilable for this year a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $48.800, The equipment originally cost $102,000 and had accumulated depreciation of $46,000. c. Long-term investments that cost $-21000 were sold during the year for $65.000. 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. . Prepare a statement of cash flows for this year Compute free cash flow for this year Complete this question by entering your answers in the tabs below