Document Preview: Cassandra Corporation
Comparative Balance Sheets
December 31
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Cash
Accounts Receivable
Investments
Equipment
Accumulated depreciation-equipment
Total
Accounts Payable
Bonds payable
Common Stock
Retained Earnings
Total
2014
$17,000
25,200
20,000
60,000
(14,000)
$108,200
$14,600
10,000
50,000
33,600
108,200
2013
$17,700
22,300
16,000
70,00
(10,000)
$116,000
$11,100
30,000
45,000
29,900
$116,000
See below
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Additional Information:
1. Net income was $18,300. Dividends declared and paid were $14,600
2. Equipment which cost $10,000 and had accumulated depreciation of $1,800 was sold for $3,500.
3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation.
Instructions
a. Prepare a statement of cash flows for 2014 using the indirect method.
b. Compute free cash flow