Required: Compute Apex Company's free cash flow for the current year. (Negative amo
Required: Compute Apex Company's free cash flow for the current year. (Negative amo
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

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
$ 21,300
(61,900)
(26,700)
10,300
54,700
(11,100)
3,200
Free cash flow
14,700
(41,300)
(121,100)
89,000
38,900
(28,300)
$ 40,100
(10,200)
29,900
(147,700)
99,600
(18,200)
28,300
$ 10,100
Required:
Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.)
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps

Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education