Apex Company prepared the statement of cash flows for the current year that is s

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 Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities $ 20,100 (61,500) (25,100) 9,400 54,300 (10,100) Increase in income taxes payable 3,300 (9,600) Net cash provided by operating activities Investing activities Proceeds from the sale of equipment Loan to Thomas Company Additions to plant and equipment 31,900 15,200 (41,900) (121,800) Net cash used for investing activities Financing activities Increase in bonds payable Increase in common stock Cash dividends (148,500) 88,800 38,700 (28,400) Net cash provided by financing activities 99,100 Net decrease in cash Beginning cash balance (17,500) 27,200 Ending cash balance S 9,700 Required: Compute Apex Company's free cash flow for the current year (Negative amount should be indicated by a minus sign.) Free cash flow

Explanation / Answer

Answer:-

Free cash flow = Opreating cash flow – Capital expenditures

                        = $31900 - $121800

                        = -$89900

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