Apex Company prepared the statement of cash flows for the current year that is shown below:...
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Apex Company prepared the statement of cash flows for the current year that is shown below: Operating activities: Net income Apex Company Statement of Cash Flows-Indirect Method Adjustments to convert net income to cash basis: $ 21,100 (61,700) $ 42,000 Depreciation Increase in accounts receivable Increase in inventory (25,500) Decrease in prepaid expenses 10,700 Increase in accounts payable 54,600 Decrease in accrued liabilities (10,800) Increase in income taxes payable 3,200 Net cash provided by (used in) operating activities (8,400) 33,600 Investing activities: Proceeds from the sale of equipment 14,300 Loan to Thomas Company (40,500) Additions to plant and equipment (121,900) Net cash provided by (used in) investing activities (148,100) Financing activities: Increase in bonds payable 89,600 Increase in common stock 39,800 Cash dividends (29,200) Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents 100,200 (14,300) 27,800 Ending cash and cash equivalents $ 13,500 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash flow Apex Company prepared the statement of cash flows for the current year that is shown below: Operating activities: Net income Apex Company Statement of Cash Flows-Indirect Method Adjustments to convert net income to cash basis: $ 21,100 (61,700) $ 42,000 Depreciation Increase in accounts receivable Increase in inventory (25,500) Decrease in prepaid expenses 10,700 Increase in accounts payable 54,600 Decrease in accrued liabilities (10,800) Increase in income taxes payable 3,200 Net cash provided by (used in) operating activities (8,400) 33,600 Investing activities: Proceeds from the sale of equipment 14,300 Loan to Thomas Company (40,500) Additions to plant and equipment (121,900) Net cash provided by (used in) investing activities (148,100) Financing activities: Increase in bonds payable 89,600 Increase in common stock 39,800 Cash dividends (29,200) Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents 100,200 (14,300) 27,800 Ending cash and cash equivalents $ 13,500 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash flow
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To compute Apex Companys free cash flow for the current year we use the formula Free Cash ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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