Determine zubin mehta corporations free cash flow

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Reference no: EM131772384

Presented below is a condensed version of the comparative balance sheets for Zubin Mehta Corporation for the last two years at December 31.

 

2017

2016

Cash

177,000

78,000

Accounts Receivable

180,000

185,000

Investments

52,000

74,000

Equipment

298,000

240,000

Accumulated Depreciation-Equipment

(106,000)

(89,000)

Current Liabilities

134,000

151,000

Common Stock

160,000

160,000

Retained Earnings

307,000

177,000

Additional information:

Investments were sold at a loss of $10,000; no equipment was sold; cash dividends paid were $30,000; and net income was $160,000.

A. Prepare a statement of cash flows for 2017 for Zubin Mehta Corporation

B. Determine Zubin Mehta Corporation's free cash flow.

Reference no: EM131772384

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