*P13-8A Data for Rajesh Company are presented in P13-7A. 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 operating expenses.
4. All sales and purchases are on account.
Instructions
(a) Prepare a statement of cash flows for Rajesh Company using the direct method.
(b) Compute free cash flow.
