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 $ 41,500 Adjustments to convert net income to cash basis: Depreciation $ 21,300 Increase in accounts receivable (61,300 ) Increase in inventory (25,900 ) Decrease in prepaid expenses 9,600 Increase in accounts payable 53,300 Decrease in accrued liabilities (11,000 ) Increase in income taxes payable 4,600 (9,400 ) Net cash provided by (used in) operating activities 32,100 Investing activities: Proceeds from the sale of equipment 15,100 Loan to Thomas Company (41,100 ) Additions to plant and equipment (121,400 ) Net cash provided by (used in) investing activities (147,400 ) Financing activities: Increase in bonds payable 88,900 Increase in common stock 39,300 Cash dividends (29,000 ) Net cash provided by (used in) financing activities 99,200 Net decrease in cash and cash equivalents (16,100 ) Beginning cash and cash equivalents 27,200 Ending cash and cash equivalents $ 11,100 Required: Compute Apex Company’s free cash flow for the current year. (Negative amount should be indicated by a minus sign.)

Answer 1

Amount Amount Net Cash provided by operation Capital expenditure (Additions to plant & Equipment) Dividends paid $32,100 -$121,400 $29,000 $150,400 Free Cash Flow -$118,300 Free Cash Flow - $118,300