Skysong, Corporation issued the following statement of cash flows for 2022. Skysong, Corporation Statement of Cash Flows—Indirect Method For the Year Ended December 31, 2022 Cash flows from operating activities Net income $62,200 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $9,000 Decrease in accounts receivable 8,500 Increase in inventory (4,700) Decrease in accounts payable (2,100) Loss on disposal of plant assets 3,400 14,100 Net cash provided by operating activities 76,300 Cash flows from investing activities Sale of investments 3,100 Purchase of equipment (24,500) Net cash used by investing activities (21,400) Cash flows from financing activities Issuance of common stock 20,000 Payment on long-term note payable (10,200) Payment of cash dividends (12,800) Net cash used by financing activities (3,000) Net increase in cash 51,900 Cash at beginning of year 14,200 Cash at end of year $66,100 (a) Compute free cash flow for Skysong, Corporation. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free cash flow $

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Skysong, Corporation issued the following statement of cash flows for 2022.

Skysong, Corporation Statement of Cash Flows—Indirect Method For the Year Ended December 31, 2022
Cash flows from operating activities
Net income		$62,200
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense	$9,000
Decrease in accounts receivable	8,500
Increase in inventory	(4,700)
Decrease in accounts payable	(2,100)
Loss on disposal of plant assets	3,400	14,100
Net cash provided by operating activities		76,300
Cash flows from investing activities
Sale of investments	3,100
Purchase of equipment	(24,500)
Net cash used by investing activities		(21,400)
Cash flows from financing activities
Issuance of common stock	20,000
Payment on long-term note payable	(10,200)
Payment of cash dividends	(12,800)
Net cash used by financing activities		(3,000)
Net increase in cash		51,900
Cash at beginning of year		14,200
Cash at end of year		$66,100

(a) Compute free cash flow for Skysong, Corporation. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Free cash flow

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