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
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 27BE
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Question
![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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F70ae18fa-4616-48a0-8ab9-3642194406c1%2Fe22fa57c-f534-467e-b5a5-e464245bc467%2F2e0i9in_processed.jpeg&w=3840&q=75)
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.)
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