(Preparation of a Statement of Cash Flows)
Presented below is a condensed version of the comparative balance sheets for Sondergaard Corporation for the last two years at December 31.
|
2010 |
2019 |
|
|
Cash |
157,000 |
78,000 |
|
Accounts receivable |
180,000 |
185,000 |
|
Investments |
52,000 |
74,000 |
|
Equipment |
298,000 |
240,000 |
|
Less: Accumulated depreciation |
(106,000) |
(89,000) |
|
Current liabilities |
134,000 |
151,000 |
|
Capital stock |
160,000 |
160,000 |
|
Retained earnings |
287,000 |
177,000 |
|
Additional information: |
Investments were sold at a loss (not extraordinary) of $7,000; no equipment was sold; cash dividends paid were $50,000; and net income was $160,000.
Instructions
(a) Prepare a statement of cash flows for 2010 for Sondergaard Corporation.
(b) Determine Sondergaard Corporation’s free cash flow.