Compute free cash flow

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Question: Data for Warner Company are presented .Further analysis reveals the following.

1. Accounts payable pertain to merchandise suppliers.

2. All operating expenses except for depreciation were paid in cash.

3. All depreciation expense is in the selling expense category.

4. All sales and purchases are on account

Instructions: (a) Prepare a statement of cash flows for Warner Company using the direct method.

(b) Compute free cash flow.

Reference no: EM131837042

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