Would you be able to assist with the attached problem?

Complete P14-9 on page 669 of Managerial Accounting by Noreen & Brewer. Present your responses in an Excel spreadsheet PROBLEM 14-9 Prepare a Statement of Cash Flows; Free Cash Flow [LO1, LO2, LO3] Foxboro Company's income statement for Year 2 follows: Its balance sheet amounts at the end of Years 1 and 2 are as follows: Equipment that had cost $30,000 and on which there was accumulated depreciation of $10,000 was sold during Year 2 for $26,000. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. Required: 1. Using the indirect method, compute the net cash provided by operating activities for Year 2. 2. Prepare a statement of cash flows for Year 2. 3. Compute the free cash flow for Year 2. 4. Briefly explain why cash declined so sharply during the year. FOXBORO COMPANY Income Statement Sales Cost of Goods Sold Gross Margin Selling & Administrative Expenses Net Operating Income Gain on Sale of Equipment Income before Taxes Income Taxes Net Income $700,000 $400,000 $300,000 $216,000 $84,000 $6,000 $90,000 $27,000 $63,000 FOXBORO COMPANY Balance Sheet Year 2 Year 1 Change Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Plant & Equipment Accumulated Depreciation Net Plant & Equipment Loan to Harker Company Total Assets $11,000 $250,000 $318,000 $7,000 $586,000 $620,000 $165,000 $455,000 $40,000 $1,081,000 $19,000 $180,000 $270,000 $16,000 $485,000 $500,000 $130,000 $370,000 $855,000 ($8,000) $70,000 $48,000 ($9,000) $101,000 $120,000 $35,000 $85,000 $40,000 $226,000 Liabilities & Stockholders' Equity Accounts Payable Accrued Liabilities Income Tax Payable Total Current Liabilities Bonds Payable Total Liabilities Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity $310,000 $42,000 $84,000 $436,000 $190,000 $626,000 $335,000 $120,000 $455,000 $1,081,000 $260,000 $50,000 $80,000 $390,000 $100,000 $490,000 $275,000 $90,000 $365,000 $855,000 $50,000 ($8,000) $4,000 $46,000 $90,000 $136,000 $60,000 $30,000 $90,000 $226,000 Initial Cost of Equipment Accumulated Depreciation Proceeds from Sale of Equipment $30,000 $10,000 $26,000 PROBLEM #1 - Net Cash Provided By Operating Activities Net Income Adjustments to Convert Net Income to Net Cash: Depreciation Increase in Accounts Receivable Increase in Inventory Decrease in Prepaid Expenses Increase in Accounts Payable Decrease in Accrued Liabilities Increase in Income Taxes Payable Gain on Sale of Equipment Net Cash Provided by Operating Activities PROBLEM #2- COMPLETE A STATEMENT OF CASH FLOWS FOXBORO COMPANY Statement of Cash Flows Year 2 Operating Activities: Net Income Adjustments to Convert Net Income to Net Cash: Depreciation $0 Increase in Accounts Receivable $0 Increase in Inventory $0 Decrease in Prepaid Expenses $0 Increase in Accounts Payable $0 Decrease in Accrued Liabilities $0 Increase in Income Taxes Payable $0 Gain on Sale of Equipment $0 Net Cash Provided by Operating Activities Investing Activities: Proceeds from Sale of Equipment Loan to Harker Company Additions to Plant & Equipment Net Cash Used in Investing Activities Financing Activities: Issuance of Bonds Payable Issuance of Common Stock Cash Dividends Net Cash Provided by Financing Activities $0 $0 $0 This just carries down from your calculation of Problem #1 $0 $0 $0 $0 Net Increase in Cash Cash Balance, Beginning Cash Balance, Ending $0 PROBLEM #3 Free Cash Flow Computation Net Cash Provided by Operating Activities Capital Expenditures Dividends Free Cash Flow $0 $0 PROBLEM #4- Your Analysis of the Above $0 does this match your balance sheet cash line? FOXBORO COMPANY Income Statement Sales Cost of Goods Sold Gross Margin Selling & Administrative Expenses Net Operating Income Gain on Sale of Equipment Income before Taxes Income Taxes Net Income $700,000 $400,000 $300,000 $216,000 $84,000 $6,000 $90,000 $27,000 $63,000 FOXBORO COMPANY Balance Sheet Year 2 Year 1 Change Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Plant & Equipment Accumulated Depreciation Net Plant & Equipment Loan to Harker Company Total Assets $11,000 $250,000 $318,000 $7,000 $586,000 $620,000 $165,000 $455,000 $40,000 $1,081,000 $19,000 $180,000 $270,000 $16,000 $485,000 $500,000 $130,000 $370,000 $855,000 ($8,000) $70,000 $48,000 ($9,000) $101,000 $120,000 $35,000 $85,000 $40,000 $226,000 Liabilities & Stockholders' Equity Accounts Payable Accrued Liabilities Income Tax Payable Total Current Liabilities Bonds Payable Total Liabilities Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity $310,000 $42,000 $84,000 $436,000 $190,000 $626,000 $335,000 $120,000 $455,000 $1,081,000 $260,000 $50,000 $80,000 $390,000 $100,000 $490,000 $275,000 $90,000 $365,000 $855,000 $50,000 ($8,000) $4,000 $46,000 $90,000 $136,000 $60,000 $30,000 $90,000 $226,000 Initial Cost of Equipment Accumulated Depreciation Proceeds from Sale of Equipment $30,000 $10,000 $26,000 PROBLEM #1 - Net Cash Provided By Operating Activities Net Income Adjustments to Convert Net Income to Net Cash: Depreciation $45,000 Increase in Accounts Receivable ($70,000) Increase in Inventory ($48,000) Decrease in Prepaid Expenses $9,000 Increase in Accounts Payable $50,000 Decrease in Accrued Liabilities ($8,000) Increase in Income Taxes Payable $4,000 Gain on Sale of Equipment ($6,000) Net Cash Provided by Operating Activities PROBLEM #2- COMPLETE A STATEMENT OF CASH FLOWS FOXBORO COMPANY Statement of Cash Flows Year 2 Operating Activities: Net Income Adjustments to Convert Net Income to Net Cash: Depreciation $45,000 Increase in Accounts Receivable ($70,000) Increase in Inventory ($48,000) Decrease in Prepaid Expenses $9,000 Increase in Accounts Payable $50,000 Decrease in Accrued Liabilities ($8,000) Increase in Income Taxes Payable $4,000 Gain on Sale of Equipment ($6,000) Net Cash Provided by Operating Activities Investing Activities: Proceeds from Sale of Equipment $26,000 Loan to Harker Company ($40,000) Additions to Plant & Equipment ($150,000) Net Cash Used in Investing Activities Financing Activities: Issuance of Bonds Payable $90,000 Issuance of Common Stock $60,000 Cash Dividends ($33,000) Net Cash Provided by Financing Activities Net Increase in Cash Cash Balance, Beginning Cash Balance, Ending PROBLEM #3 Free Cash Flow Computation Net Cash Provided by Operating Activities Capital Expenditures Dividends Free Cash Flow $63,000 ($24,000) $39,000 $63,000 This just carries down from your calculation of Problem #1 ($24,000) $39,000 ($164,000) $117,000 ($8,000) $19,000 $11,000 $39,000 $124,000 $33,000 $157,000 ($118,000) PROBLEM #4- Your Analysis of the Above Cash has declied during the year 2, inspite of having a net income and cash inflow from financing activities. There are two reasons for that; - Purchase of equipments ( Capital expenditures) - Increase in current Assets and Decrease in Current liabilities does this match your balance sheet cash line