These are the options;

• Adjustments to convert contribution margin to a cash basis:
• Adjustments to convert gross margin to a cash basis:
• Adjustments to convert net income to a cash basis:
• Adjustments to convert sales to a cash basis:

• Additions to plant and equipment
• Cash dividends paid
• Decrease in accounts payable
• Decrease in accounts receivable
• Decrease in accrued liabilities
• Decrease in income taxes payable
• Decrease in inventory
• Decrease in prepaid expenses
• Depreciation
• Gain on sale of equipment
• Gain on sale of investments
• Increase in accounts payable
• Increase in accounts receivable
• Increase in accrued liabilities
• Increase in income taxes payable
• Increase in inventory
• Increase in prepaid expenses
• Issuance of bonds payable
• Issuance of common stock
• Loss on sale of equipment
• Loss on sale of investments
• Proceeds from sale of equipment
• Proceeds from sale of long-term investments
• Retirement of bonds payable

• Net cash provided by financing activities
• Net cash provided by investing activities
• Net cash provided by operating activities
• Net cash used in financing activities
• Net cash used in investing activities
• Net cash used in operating activities

Problem 15-13 (Algo) Prepare and Interpret a Statement of Cash Flows; Free Cash Flow [LO15-1, LO15-2, LO15-3] Mary Walker, president of Rusco Company, considers $29,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $24,000 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. The following additional information is available for this year. a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $51,200. The equipment originally cost $108,000 and had accumulated depreciation of $49,000. c. Long-term investments that cost $48,000 were sold during the year for $72,500. d. The company did not retire any bonds payable or repurchase any of its common stock. Requlred: 1. Using the indirect method, compute the net cash provided by/used in operating activities for this year. 2. Prepare a statement of cash flows for this year. 3. Compute free cash flow for this year. 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.) Prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)