Question

Nash Beverage Company reported the following items in the most recent year.

Net income		$45,300
Dividends paid		6,800
Increase in accounts receivable		12,940
Increase in accounts payable		8,170
Purchase of equipment (capital expenditure)		9,770
Depreciation expense		5,170
Issue of notes payable		24,180

Compute net cash provided by operating activities, the net change in cash during the year. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

NASH BEVERAGE COMPANY Statement of Cash Flows

	$

$

$

Compute free cash flow.

Free Cash Flow

$

Answer 1

	cash from operating activities
	net income					45,300
	Depreciation expense				5,170
	increase in accounts receivable				-12,940
	increase in accounts payable				8,170
						400
	Net cash provided by operating activities					45,700
	cash from investing activities
	purchase of equipment					-9,770
	cash from financing activity
	dividends paid				-6,800
	issue of notes payable				24,180
	Net cash from financing activity					17,380
	net increase in cash					53,310
	Free cash flow
	29,130