Jon Gezotis Company reported the following items in 2014:
|
Net income
|
$50,000
|
|
Dividends paid
|
6,000
|
|
Increase in accounts receivable
|
12,000
|
|
Increase in accounts payable
|
8,000
|
|
Purchase of equipment (capital expenditure)
|
9,000
|
|
Depreciation expense
|
3,500
|
|
Issue of notes payable
|
15,000
|
Required:
Calculate the following:
(1) net cash provided by operating activities,
(2) the net change in cash during 2014, and
(3) free cash flow.