$3$

Exercise $13-6($Algo$)$ Calculating Free Cash Flow $[$LO$13-6]$

$1\mathrm{.}75$

points

Apex Company prepared the statement of cash flows shown below:

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{\backslash$begin$\{$tabular$\}\{$l$\}$

Apex Company $\backslash \backslash$

Statement of Cash Flows$-$Indirect Method

$\backslash$end$\{$tabular$\}\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Operating activities:$\}\backslash \backslash$

$\backslash$hline Net income & & $\backslash$$ $40,500\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Adjustments to convert net income to cash basis:$\}\backslash \backslash$

$\backslash$hline Depreciation & $\backslash$$ $20,500$ & $\backslash \backslash$

$\backslash$hline Increase in accounts receivable & $\backslash ((61,800)\backslash )$ & $\backslash \backslash$

$\backslash$hline Increase in inventory & $\backslash ((25,700)\backslash )$ & $\backslash \backslash$

$\backslash$hline Decrease in prepaid expenses & $9,600$ & $\backslash \backslash$

$\backslash$hline Increase in accounts payable & $54,700$ & $\backslash \backslash$

$\backslash$hline Decrease in accrued liabilities & $\backslash ((11,500)\backslash )$ & $\backslash \backslash$

$\backslash$hline Increase in income taxes payable & $3,900$ & $\backslash ((10,300)\backslash )\backslash \backslash$

$\backslash$hline Net cash provided by $($used in$)$ operating activities & & $30,200\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Investing activities:$\}\backslash \backslash$

$\backslash$hline Proceeds from the sale of equipment & $15,300$ & $\backslash \backslash$

$\backslash$hline Loan to Thomas Company & $\backslash ((41,000)\backslash )$ & $\backslash \backslash$

$\backslash$hline Additions to plant and equipment & $\backslash ((120,300)\backslash )$ & $\backslash \backslash$

$\backslash$hline Net cash provided by $($used in$)$ investing activities & & $\backslash ((146,000)\backslash )\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Financing activities:$\}\backslash \backslash$

$\backslash$hline Increase in bonds payable & $88,200$ & $\backslash \backslash$

$\backslash$hline Increase in common stock & $39,800$ & $\backslash \backslash$

$\backslash$hline Cash dividends & $\backslash ((28,100)\backslash )$ & $\backslash \backslash$

$\backslash$hline Net cash provided by $($used in$)$ financing activities & & $99,900\backslash \backslash$

$\backslash$hline Net decrease in cash and cash equivalents & & $\backslash ((15,900)\backslash )\backslash \backslash$

$\backslash$hline Beginning cash and cash equivalents & & $28,700\backslash \backslash$

$\backslash$hline Ending cash and cash equivalents & & $\backslash$$ $12,800\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Required:

Compute Apex Company's free cash flow.

Note: Negative amount should be indicated by a minus sign.

Free cash flow