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Apex Company prepared the statement of cash flows for the current year that is shown below:
| Apex Company Statement of Cash FlowsIndirect Method |
| Operating activities: | | | | | | |
| Net income | | | | $ | 40,600 | |
| Adjustments to convert net income to cash basis: | | | | | | |
| Depreciation | $ | 20,500 | | | | |
| Increase in accounts receivable | | (60,100 | ) | | | |
| Increase in inventory | | (26,300 | ) | | | |
| Decrease in prepaid expenses | | 9,700 | | | | |
| Increase in accounts payable | | 54,200 | | | | |
| Decrease in accrued liabilities | | (11,600 | ) | | | |
| Increase in income taxes payable | | 3,500 | | | (10,100 | ) |
| Net cash provided by (used in) operating activities | | | | | 30,500 | |
| Investing activities: | | | | | | |
| Proceeds from the sale of equipment | | 15,100 | | | | |
| Loan to Thomas Company | | (41,600 | ) | | | |
| Additions to plant and equipment | | (120,700 | ) | | | |
| Net cash provided by (used in) investing activities | | | | | (147,200 | ) |
| Financing activities: | | | | | | |
| Increase in bonds payable | | 88,800 | | | | |
| Increase in common stock | | 39,100 | | | | |
| Cash dividends | | (28,700 | ) | | | |
| Net cash provided by (used in) financing activities | | | | | 99,200 | |
| Net decrease in cash and cash equivalents | | | | | (17,500 | ) |
| Beginning cash and cash equivalents | | | | | 27,600 | |
| Ending cash and cash equivalents | | | | $ | 10,100 | |
| |
Required:
Compute Apex Companys free cash flow for the current year. (Negative amount should be indicated by a minus sign
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