Rouse Exercise Equipment, Inc. reported the following statement of cash flows for 2024: Rouse Exercise Equipment, Inc. Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: Net Income $107,000 Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Depreciation Expense $54,000 Increase in Accounts Receivable (11,000) Decrease in Merchandise Inventory 11,000 Increase in Accounts Payable 1,000 Decrease in Salaries Payable (2,000) 53,000 Net Cash Provided by (Used for) Operating Activities 160,000 Cash Flows from Investing Activities: Cash Payment for Acquisition of Plant Assets (92,000) Cash Payment for Investments (23,000) Net Cash Provided by (Used for) Investing Activities (115,000) Cash Flows from Financing Activities: Cash Payment of Dividends (47,000) Cash Payment of Notes Payable (8,000) Cash Receipt from Issuance of Common Stock 11,000 Net Cash Provided by (Used for) Financing Activities (44,000) Net Increase (Decrease) in Cash 1,000 Cash Balance, December 31, 2023 16,000 Cash Balance, December 31, 2024 $17,000 Rouse plans to purchase a truck for $23,000 and a forklift for $125,000 next year. In addition, it plans to pay cash dividends of $3,500. Assuming Rouse plans similar activity for 2025, what would be the amount of free cash flow? (Abbreviations used: Cash pmts for planned invest. = Cash payments for planned investments in long-term assets; NCFA = Net cash provided by financing activities; NCOA = Net cash provided by operating activities. Use parentheses or a minus sign to show negative free cash flow.) Select the labels and enter the amounts to calculate Rouse's free cash flow for 2025.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 15E

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Question

Rouse

Exercise Equipment, Inc. reported the following statement of cash flows for

2024:

Rouse Exercise Equipment, Inc.
Statement of Cash Flows
Year Ended December 31, 2024
Cash Flows from Operating Activities:
Net Income		$107,000
Adjustments to Reconcile Net Income to Net Cash
Provided by (Used for) Operating Activities:
Depreciation Expense	$54,000
Increase in Accounts Receivable	(11,000)
Decrease in Merchandise Inventory	11,000
Increase in Accounts Payable	1,000
Decrease in Salaries Payable	(2,000)	53,000
Net Cash Provided by (Used for) Operating Activities		160,000

Cash Flows from Investing Activities:
Cash Payment for Acquisition of Plant Assets	(92,000)
Cash Payment for Investments	(23,000)
Net Cash Provided by (Used for) Investing Activities		(115,000)

Cash Flows from Financing Activities:
Cash Payment of Dividends	(47,000)
Cash Payment of Notes Payable	(8,000)
Cash Receipt from Issuance of Common Stock	11,000
Net Cash Provided by (Used for) Financing Activities		(44,000)

	Net Increase (Decrease) in Cash		1,000
	Cash Balance, December 31, 2023		16,000
	Cash Balance, December 31, 2024		$17,000

Rouse

plans to purchase a truck for

$23,000

and a forklift for

$125,000

next year. In addition, it plans to pay cash dividends of

$3,500.

Assuming

Rouse

plans similar activity for

2025,

what would be the amount of free cash flow? (Abbreviations used: Cash pmts for planned invest. = Cash payments for planned investments in long-term assets; NCFA = Net cash provided by financing activities; NCOA = Net cash provided by operating activities. Use parentheses or a minus sign to show negative free cash flow.)

Select the labels and enter the amounts to calculate

Rouse's

free cash flow for

2025.

Free cash flow

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