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
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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
Transcribed Image Text: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
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