Prepare a balance sheet for crown-well inc as at period end

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Reference no: EM131903151

1. The following is the balance sheet for Crown-well Inc. for the period ending December 2011:

Crown-well Inc.

Balance Sheet (2011)

Cash	$	24,000	Current Liabilities	$	30,000
Other current assets		51,000	Long-Term Notes payable		33,000
Total current assets		75,000	Bonds		40,000
Investments		40,000	Common Stock		150,000
Fixed Assets(Net)		125,000	Retained Earnings		49,000
Land		62,000
	$	302,000		$	302,000

The following transactions occurred during 2012:

$20,000, sale on some of its investments

$12,000, additional land for expansion

$10,000, bonds payment

$20,000, issuance of common stock

$5,000, dividend payment to stockholders

$42,000, Net Income for 2012

$18,000, depreciation

$10,050, taxes

$10,000, Interest expense

$18,000, purchase of second piece of land, using $12,000 in bonds and $6,000 in long-term notes payable.

Required:

a) Prepare a balance Sheet for Crown-well Inc. as at period ending 2012.

b) Compute the firm's free cash flows for 2012.

(Hint: In computing FCF, please consider changes in investments and changes in Land as separate items from the Net Fixed Asset in the balance sheet)

Reference no: EM131903151

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