Answer and Explanation:
The computation of net cash provided by operating activities is shown below:-
Keyser Beverage Company
Statement of Cash Flows
Particulars Amount
Cash Flow from Operating Activities:
Net Income $44,500
Adjustments to reconcile net income
Depreciation $6,890.00
Increase in Accounts receivable -$11,290
Increase in Accounts payable 7,890 $3,490
Net Cash Flow From Operating Activities a $47,990
Cash Flow from Investing Activities
Purchase of Equipment -$9,400
Net Cash Flow From Investing Activities b -$9,400
Cash Flow from Financing Activities
Issue of note payable $24,960
Dividend paid -$6,220
Net Cash Flow From Financing Activities c $18,740
Net Change in Cash (a + b + c) $57,330
Free Cash flow = Net cash provided by operating activities - Purchase of equipment - Dividend paid
= $47,990 - $9,400 - $6,220
= $32,370
