Morgan Company Reported the Following Items in 2013 Required:
Calculate the Following:
(1)net Cash Provided by Operating Activities

Morgan Company reported the following items in 2013:
$\begin{array}{|l|r|}\hline \text { Net income } & \$ 50,000 \\\hline \text { Dividends paid } & 6,000 \\\hline \text { Increase in accounts receivable } & 12,000 \\\hline \text { Increase in accounts payable } & 8,000 \\\hline \text { Purchase of equipment (capital expenditure) } & 9,000 \\\hline \text { Depreciation expense } & 3,500 \\\hline \text { Issue of notes payable } & 15,000\\\hline\end{array}$
Required:
Calculate the following:
(1)net cash provided by operating activities,
(2)the net change in cash during 2013,and
(3)free cash flow.

Correct Answer:

Verified

(1)
(3)Free Cash Flow = $49,...

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