Auto Supply Company's 2018 statement of cash flows appears in Exhibit 13-8. Study the statement and respond to the following questions.
In Exhibit 13-8

a. What was the company's free cash flow in 2018?
b. What were the major sources and uses of cash from financing activities during 2018? Did the net effect of financing activities result in an increase or a decrease in cash during the year?
c. What happened to the total amount of cash and cash equivalents during the year? Assuming
2018 was a typical year, is the firm in a position to continue its dividend payments in the future? Explain.
d. Look at the reconciliation of net income to net cash provided by operating activities, and explain the following:
1. Net loss (gain) from the sale of marketable securities.
2. Increase in accounts receivable.

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AUTO SUPPLY CO STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2018 Cash flows from operating actvhtles $250.000 60,000 5,000 10,000 $325,000 Decrease In accrued expenses payable . . . . . _ . . . . . . 15,000 20,000 45,000 $280,000 Net cash provided by operating activities. . . . . . . . . . . . . . . . Cash flows from Investing actvttles: Proceeds from sales of marketable securities $ 35,000 . . . . . . . .. . . . . . . . Cash pald to acqulre plant assets (see (30,000) Net cash provided by Investing actlvities... .. . .. . . . .. .. . . . . 5,000 Cash flows from flnancing actvitles: Payments to retire bonds payable .. . . . . . . . . .. ...(150,000) Net cash used for financing activitles . . . . . . . . . . . . . . . . . . . . . . . (290,000) $(5,000) 50,000 $ 45,000 Supplementary Schedule: Noncash Investing and Flnancing Activitles $100,000 Less: Portion financed through Issuance of 70,000 $30,000