Kingbird Corporation issued the following statement of cash flows for 2022. Kingbird Corporation Statement of Cash...

Transcribed Image Text:

Kingbird Corporation issued the following statement of cash flows for 2022. Kingbird Corporation Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2022 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Decrease in accounts receivable Increase in inventory Decrease in accounts payable Loss on disposal of plant assets Net cash provided by operating activities Cash flows from investing activities Sale of investments Purchase of equipment Net cash used by investing activities Cash flows from financing activities Issuance of stock Payment on long-term note payable Payment for dividends Net cash used by financing activities Net increase in cash Cash at beginning of year Cash at end of year $ 10,920 11,400 (6,000) (2,640) 3,960 3,720 (29,040) 24,000 (12,000) (15,600) $70,800 17,640 88,440 (25,320) (3,600) 59,520 15,600 $75,120 (a) Compute free cash flow for Kingbird Corporation. (Show a negative free cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000)) Free cash flow for Kingbird Corporation Kingbird Corporation issued the following statement of cash flows for 2022. Kingbird Corporation Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2022 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Decrease in accounts receivable Increase in inventory Decrease in accounts payable Loss on disposal of plant assets Net cash provided by operating activities Cash flows from investing activities Sale of investments Purchase of equipment Net cash used by investing activities Cash flows from financing activities Issuance of stock Payment on long-term note payable Payment for dividends Net cash used by financing activities Net increase in cash Cash at beginning of year Cash at end of year $ 10,920 11,400 (6,000) (2,640) 3,960 3,720 (29,040) 24,000 (12,000) (15,600) $70,800 17,640 88,440 (25,320) (3,600) 59,520 15,600 $75,120 (a) Compute free cash flow for Kingbird Corporation. (Show a negative free cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000)) Free cash flow for Kingbird Corporation

Answer rating: 100% (QA)

Step 11 Solution Calculation of Free cash flow for Kingbird corporat... View the full answer