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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 Adjustments to convert net income to cash basis: 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 Net cash provided by (used in) operating activities Investing activities: Proceeds from the sale of equipment Loan to Thomas Company Additions to plant and equipment Net cash provided by (used in) investing activities Financing activities: Increase in bonds payable Increase in common stock Cash dividends Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents Free cash flow $ 21,100 (61,200) (25,500) 10,000 53,700 (10,300) 3,100 14,400 (40,400) (121,700) 88,100 38,600 (28,800) $ 40,900 (9,100) 31,800 (147,700) 97,900 (18,000) 28, 200 $ 10,200 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sig

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 Adjustments to convert net income to cash basis: 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 Net cash provided by (used in) operating activities Investing activities: Proceeds from the sale of equipment Loan to Thomas Company Additions to plant and equipment Net cash provided by (used in) investing activities Financing activities: Increase in bonds payable Increase in common stock Cash dividends Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents Free cash flow $ 21,100 (61,200) (25,500) 10,000 53,700 (10,300) 3,100 14,400 (40,400) (121,700) 88,100 38,600 (28,800) $ 40,900 (9,100) 31,800 (147,700) 97,900 (18,000) 28, 200 $ 10,200 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sig

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Adjustments to convert net income to cash basis: 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 Net cash provided by (used in) operating activities Investing activities: Proceeds from the sale of equipment Loan to Thomas Company Additions to plant and equipment Net cash provided by (used in) investing activities Financing activities: Increase in bonds payable Increase in common stock Cash dividends Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents Free cash flow $ 21,100 (61,200) (25,500) 10,000 53,700 (10,300) 3,100 14,400 (40,400) (121,700) 88,100 38,600 (28,800) $ 40,900 (9,100) 31,800 (147,700) 97,900 (18,000) 28, 200 $ 10, 200 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.)
Transcribed Image Text: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 Adjustments to convert net income to cash basis: 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 Net cash provided by (used in) operating activities Investing activities: Proceeds from the sale of equipment Loan to Thomas Company Additions to plant and equipment Net cash provided by (used in) investing activities Financing activities: Increase in bonds payable Increase in common stock Cash dividends Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents Free cash flow $ 21,100 (61,200) (25,500) 10,000 53,700 (10,300) 3,100 14,400 (40,400) (121,700) 88,100 38,600 (28,800) $ 40,900 (9,100) 31,800 (147,700) 97,900 (18,000) 28, 200 $ 10, 200 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.)
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