Pronghorn Co. reported the following items in the most recent year: Net income $ 44,500 Dividends paid
Question:
Pronghorn Co. reported the following items in the most recent year:
| Net income | $ 44,500 | |
| Dividends paid | 5,000 | |
| Increase in accounts receivable | 10,000 | |
| Increase in accounts payable | 6,500 | |
| Purchase of equipment | 8,500 | |
| Depreciation expense | 5,000 | |
| Issue of notes payable for cash | 25,000 |
Calculate net cash provided (used) by operating activities, the net change in cash during the year, and free cash flow. Dividends paid related to the company’s common shares and are treated as financing activities. Pronghorn uses the indirect method for its Statement of Cash Flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Assuming Pronghorn had 100,000 common shares outstanding for the entire year, calculate cash flow per share to be included in the financial statements if Pronghorn follows IFRS and chooses to disclose the ratio. Assume Pronghorn uses cash flow from operations for this ratio. (Round answer to 2 decimal places, e.g. 52.75.)
