Problem 12-13A Prepare and Interpret a Statement of Cash Flows, Free Cash Flow [L012-1, LO12-2, LO12-3] Mary Walker, president of Rusco Company, considers $22,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only 517,000 in cash was available at the end of 2015. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker Rusco Company Comparative Balance Sheet July 31, 2015 and 2014 2015 2014 Assets Current assets S 17,000 S 35,400 212,600 197,200 17,400 Cash Accounts Receivable 202,400 251,800 8,400 Prepaid expenses Total current assets 479,600 482,600 96,000 130,000 Plant and equipment 884,000 211,000 752,000 190,600 Less accumulated depreciation Net plant and equipment 653,000 531,400 Total assets S 1,228,600 S1,154,000