Create a statement of cash flows

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Reference no: EM133061352

Below is a condensed version of the comparative balance sheets for Sanchez Corporation for 2011 and 2012:

 

2012

2011

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

Common 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.

Required:

(a) Create a statement of cash flows for 2012 for Sanchez Corporation.

(b) Calculate the company's free cash flow.

Reference no: EM133061352

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