Barton and Williams Company reported the following items in 2015:
|
Net income
|
$50,000
|
|
Dividends paid
|
5,000
|
|
Decrease in accounts receivable
|
12,000
|
|
Decrease in accounts payable
|
8,000
|
|
Purchase of equipment (capital expenditure)
|
9,000
|
|
Depreciation expense
|
3,500
|
|
Issue of notes payable
|
15,000
|
Required: Show all your calculations to derive the following answers. (You don't need to show in report format.)
1. Net cash provided by operating activities
2. The net change in cash during 2015
3. Free cash flow