Reference no: EM132498488
The comparative balance sheets for Dingdong Corporation appear below:
DINGDONG CORPORATION
Comparative Balance Sheet
Dec. 31, 2021 Dec. 31, 2020
Assets
Cash........................................................................... $ 68,200 $ 20,800
Accounts receivable.................................................. 10,000 16,300
Prepaid expenses...................................................... 9,000 6,000
Inventory.................................................................... 32,900 30,200
Equipment.................................................................. 30,000 60,000
Accumulated depreciation-equipment......................... (17,000) (19,800)
Total assets...................................................... $ 133,100 $ 113,500
Liabilities and Shareholders' Equity
Accounts payable....................................................... $ 5,600 $ 15,000
Bonds payable............................................................ 50,000 40,000
Common shares.......................................................... 23,000 23,000
Retained earnings....................................................... 54,500 35,500
Total liabilities and shareholders' equity.............. $ 133,100 $ 113,500
Additional information:
1. Profit for the year ending December 31, 2021 was $ 39,000.
2. Cash dividends of $ 20,000 were declared and paid during the year.
3. Equipment with cost of $ 30,000 and accumulated depreciation of $ 11,500 was sold for proceeds of $ 22,000.
4. Depreciation of property, plant and equipment for the year was properly recorded at $ 8,700.
Instructions (show all calculations)
Question a) a cash flow statement for the year ended December 31, 2021, using the indirect method. ( copy & use the format below)
Question b) Calculate free cash flow.