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Apex Company Operating activities: Net income Statement of Cash Flows-Indirect Method. Adjustments to convert net income to cash basis: Depreciation. Increase in accounts receivable $ 41,200 Increase in inventory $ 20,900 (61,300) (26,400) Decrease in prepaid expenses 9,500 Increase in accounts payable 54,400 Decrease in accrued liabilities (11,000) Increase in income taxes payable 4,200 (9,700) Net cash provided by (used in) operating activities 31,500 Investing activities: Proceeds from the sale of equipment 14,500 Loan to Thomas Company (41,500) Additions to plant and equipment (120,500) Net cash provided by (used in) investing activities (147,500) Financing activities: Increase in bonds payable. 89,100 Increase in common stock 38,700 Cash dividends (28,200) Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents 99,600 (16,400) 29,000 Ending cash and cash equivalents $ 12,600 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash flow $ (118,700)

Apex Company Operating activities: Net income Statement of Cash Flows-Indirect Method. Adjustments to convert net income to cash basis: Depreciation. Increase in accounts receivable $ 41,200 Increase in inventory $ 20,900 (61,300) (26,400) Decrease in prepaid expenses 9,500 Increase in accounts payable 54,400 Decrease in accrued liabilities (11,000) Increase in income taxes payable 4,200 (9,700) Net cash provided by (used in) operating activities 31,500 Investing activities: Proceeds from the sale of equipment 14,500 Loan to Thomas Company (41,500) Additions to plant and equipment (120,500) Net cash provided by (used in) investing activities (147,500) Financing activities: Increase in bonds payable. 89,100 Increase in common stock 38,700 Cash dividends (28,200) Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents 99,600 (16,400) 29,000 Ending cash and cash equivalents $ 12,600 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash flow $ (118,700)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Apex Company Operating activities: Net income Statement of Cash Flows-Indirect Method. Adjustments to convert net income to cash basis: Depreciation. Increase in accounts receivable $ 41,200 Increase in inventory $ 20,900 (61,300) (26,400) Decrease in prepaid expenses 9,500 Increase in accounts payable 54,400 Decrease in accrued liabilities (11,000) Increase in income taxes payable 4,200 (9,700) Net cash provided by (used in) operating activities 31,500 Investing activities: Proceeds from the sale of equipment 14,500 Loan to Thomas Company (41,500) Additions to plant and equipment (120,500) Net cash provided by (used in) investing activities (147,500) Financing activities: Increase in bonds payable. 89,100 Increase in common stock 38,700 Cash dividends (28,200) Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents 99,600 (16,400) 29,000 Ending cash and cash equivalents $ 12,600 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash flow $ (118,700)
Transcribed Image Text:Apex Company Operating activities: Net income Statement of Cash Flows-Indirect Method. Adjustments to convert net income to cash basis: Depreciation. Increase in accounts receivable $ 41,200 Increase in inventory $ 20,900 (61,300) (26,400) Decrease in prepaid expenses 9,500 Increase in accounts payable 54,400 Decrease in accrued liabilities (11,000) Increase in income taxes payable 4,200 (9,700) Net cash provided by (used in) operating activities 31,500 Investing activities: Proceeds from the sale of equipment 14,500 Loan to Thomas Company (41,500) Additions to plant and equipment (120,500) Net cash provided by (used in) investing activities (147,500) Financing activities: Increase in bonds payable. 89,100 Increase in common stock 38,700 Cash dividends (28,200) Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents 99,600 (16,400) 29,000 Ending cash and cash equivalents $ 12,600 Required: Compute Apex Company's free cash flow for the current year. (Negative amount should be indicated by a minus sign.) Free cash flow $ (118,700)
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