Apex Company prepared the statement of cash flows for the current year that is shown below: Apex
Question:
Apex Company prepared the statement of cash flows for the current year that is shown below:
Apex Company | ||
Statement of Cash Flows-Indirect Method | ||
Operating activities: |
|
|
Net income ... |
| $ 40,300 |
Adjustments to convert net income to cash basis: |
| |
Depreciation ... | $ 20,900 |
|
Increase in accounts receivable ... | (61,100) |
|
Increase in inventory ... | (25,500) |
|
Decrease in prepaid expenses ... | 10,000 |
|
Increase in accounts payable ... | 53,900 |
|
Decrease in accrued liabilities ... | (10,500) |
|
Increase in deferred income taxes ... | 5,000 | (6,000) |
Net cash provided by operating activities ... |
| 34,000 |
Investing activities: |
|
|
Proceeds from the sale of equipment ... | 14,000 |
|
Loan to Thomas Company ... | (40,000) |
|
Additions to plant and equipment ... | (1,10,000) |
|
Net cash used for investing activities ... |
| (1,36,000) |
Financing activities: |
|
|
Increase in fonds payable ... | 90,000 |
|
Increase in common stock ... | 40,000 |
|
Cash dividends ... | (30,000) |
|
Net cash provided by financing activities |
| 1,00,000 |
Net decrease in cash ... |
| (2,000) |
Cash balance, beginning of year ... |
| 27,000 |
Cash balance, end of year ... |
| $ 25,000 |
Required:
Compute Apex Company's free cash flow for the current year.
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer