Apex Company prepared the statement of cash flows 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 Required: Compute Apex Company's free cash flow. Note: Negative amount should be indicated by a minus sign. Free cash flow $ 21,900 (61,700) (26,300) 10,300 53,900 (11,800) 4,400 15,500 (41,200) (121,200) 88,100 39,800 (28,900) $ 40,400 (9,300) 31,100 (146,900) 99,000 (16,800) 27,300 $ 10,500

Apex Company prepared the statement of cash flows 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 Required: Compute Apex Company's free cash flow. Note: Negative amount should be indicated by a minus sign. Free cash flow $ 21,900 (61,700) (26,300) 10,300 53,900 (11,800) 4,400 15,500 (41,200) (121,200) 88,100 39,800 (28,900) $ 40,400 (9,300) 31,100 (146,900) 99,000 (16,800) 27,300 $ 10,500

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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