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Mary Walker, president of Rusco Company, considers $41,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $36,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Rusco Company Comparative Balance Sheet at July 31 Skipped This Year Last Year Assets Current assets Cash $36,000 $58,200 249,400 237,300 Accounts Receivable Inventory eBook 268,900 200,600 Prepaid expenses 21,700 40,200 Total current assets 576,000 544,300 Long-term investments 153,000 225,000 Print Plant and equipment 902,000 771,000 Less accumulated depreciation 196,300 220,500 681,500 Net plant and equipment 574,700 Total assets $ 1,410,500 $1,344,000 Liabilities and stockholders' Equity. Current liabilities: $ 179,200 Accounts payable Accrued liabilities $ 253,100 10,100 58,800 19,200 49,500 Income taxes payable 322,000 247,900 Total current liabilities Bonds Payable 263,000 143,000 Total liabilities 585,000 389,900 Stockholders' equity: Common stock 762,500 705,000 Retained earnings 63,000 249,100 Total stockholders' equity 925,500 954,100 Total liabilities and stockholders' equity $ 3,410,500 $3,344,000 Rusco Company Income Statement For This Year Ended July 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Met operating income Monoperating items $ 30,500 Gain on sale of investments Loss on sale of equipment (10,200) Income before taxes Income taxes Net incone The following additional information is available for this year. points $ 1,220,000 762,500 457.500 326,350 131,150 20,300 151,450 45.338 $ 106,120 Prov 5 of 5 Next
5 points Skipped ellook Print Mc Graw Common stock 762,500 705,000 Retained earnings 63,000 249,100 Total stockholders equity 825,500 954,100 Total liabilities and stockholders' equity $1,410,500 $1,344,000 Rusco Company Income Statement For This Year Ended July 31- Sales $1,220,000 762,500 Cost of goods sold Groes margin 457,500 Selling and administrative expenses 326,350 131, 150 Set operating income Nonoperating itens: Gain on sale of investments $30,500 Loss on sale of equipment (10,200) Income before taxes 20,300 151,450 45,330 Income taxes Net incone $ 106,120 The following additional information is available for this year. a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $60,800. The equipment originally cost $132,000 and had accumulated depreciation of $61,000. c. Long-term investments that cost $72,000 were sold during the year for $102,500. d. The company did not retire any bonds payable or repurchase any of its common stock. Required: 1. Using the indirect method, compute the net cash provided by/used in operating activities for this year. 2. Prepare a statement of cash flows for this year. 3. Compute free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the indirect method, compute the net cash provided by/used in operating activities for this year. (List any deduction in cash and cash outflows as negative amounts) Rusco Company Statement of Cash Flows-Indirect Method partial) < Prev 5 of 5 Next >
Mc Graw Hil Required 1 Required 2 Required 3 Using the Indirect method, compute the net cash provided by/used in operating activities for this year. (List any deduction in cash and cash outflows as negative amounts.) Rusco Company Statement of Cash Flows-Indirect Method (partial) < Prev 5 or 5!!! Next
Mc Graw Ain Required 1 Required 2 Required 3 Prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.) Rusco Company Statement of Cash Flows For This Year Ended July 31 Operating activities Investing activities: Financing activities 0 < Prev 5 of 5 Next
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute free cash flow for this year (Negative amount should be indicated by a minius sign.) Free cash flow < Required 2