Question: I need help understanding how to solve this problem. Apex Company prepared the statement of cash flows for the current year that is shown below:
I need help understanding how to solve this problem.

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 $ 41, 700 Adjustments to convert net income to cash basis: Depreciation $ 21, 500 Increase in accounts receivable (61, 500) Increase in inventory (25, 100) Decrease in prepaid expenses 9,500 Increase in accounts payable 54, 800 Decrease in accrued liabilities (11, 000) Increase in income taxes payable 3, 600 (8, 200) Net cash provided by (used in) operating activities 33,500 Investing activities: Proceeds from the sale of equipment 15, 100 Loan to Thomas Company (42 , 000) Additions to plant and equipment (120 , 000) Net cash provided by (used in) investing activities (146, 900) Financing activities: Increase in bonds payable 89 , 500 Increase in common stock 39,000 Cash dividends (28 , 100) Net cash provided by (used in) financing activities 100, 400 Net decrease in cash and cash equivalents (13 , 000) Beginning cash and cash equivalents 28 , 700 Ending cash and cash equivalents $ 15,700 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash flow
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
