Exercise 13-3 (Algo) Calculating Free Cash Flow [LO13-3] 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 ish 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 $ 20,500 (61, 100) (25,700) 9,200 54,400 (10,200) 3,300 Free cash flow 14,900 (40,200) (121,900) 88,400 38,000 (28,300) $ 40,100 (9,600) 30,500 (147,200) 98,100 (18,600) 27,700 $9,100 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign
Exercise 13-3 (Algo) Calculating Free Cash Flow [LO13-3] 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 ish 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 $ 20,500 (61, 100) (25,700) 9,200 54,400 (10,200) 3,300 Free cash flow 14,900 (40,200) (121,900) 88,400 38,000 (28,300) $ 40,100 (9,600) 30,500 (147,200) 98,100 (18,600) 27,700 $9,100 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 13-3 (Algo) Calculating Free Cash Flow [LO13-3]
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
provided by (used in) operating activities
Net
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
$ 20,500
(61, 100)
(25,700)
9,200
54,400
(10,200)
3,300
Free cash flow
14,900
(40,200)
(121,900)
88,400
38,000
(28,300)
$ 40,100
(9,600)
30,500
(147,200)
98, 100
(18,600)
27,700
$ 9,100
Required:
Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7b3a5a8-62f8-422a-9e49-23846b36685e%2F933b2075-3a92-44e6-b1ff-356b96705643%2F75apen_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 13-3 (Algo) Calculating Free Cash Flow [LO13-3]
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
provided by (used in) operating activities
Net
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
$ 20,500
(61, 100)
(25,700)
9,200
54,400
(10,200)
3,300
Free cash flow
14,900
(40,200)
(121,900)
88,400
38,000
(28,300)
$ 40,100
(9,600)
30,500
(147,200)
98, 100
(18,600)
27,700
$ 9,100
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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