Monty Corp.’s comparative balance sheets are as follows. Monty Corp. Comparative Balance Sheets December 31 2022 2021 Cash $ 16,700 $ 17,500 Accounts receivable 25,100 22,300 Investments 19,850 15,850 Equipment 60,050 69,950 Accumulated depreciation—equipment (14,150 ) (10,100 ) Total $107,550 $115,500 Accounts payable $ 14,750 $ 11,150 Bonds payable 11,000 30,000 Common stock 49,900 45,300 Retained earnings 31,900 29,050 Total $107,550 $115,500 Additional information: 1. Net income was $18,250. Dividends declared and paid were $15,400. 2. Equipment which cost $9,900 and had accumulated depreciation of $2,000 was sold for $3,400. 3. No noncash investing and financing activities occurred during 2022. Prepare a statement of cash flows for 2022 using the indirect method. Compute free cash flow.
Monty Corp.’s comparative balance sheets are as follows. Monty Corp. Comparative Balance Sheets December 31 2022 2021 Cash $ 16,700 $ 17,500 Accounts receivable 25,100 22,300 Investments 19,850 15,850 Equipment 60,050 69,950 Accumulated depreciation—equipment (14,150 ) (10,100 ) Total $107,550 $115,500 Accounts payable $ 14,750 $ 11,150 Bonds payable 11,000 30,000 Common stock 49,900 45,300 Retained earnings 31,900 29,050 Total $107,550 $115,500 Additional information: 1. Net income was $18,250. Dividends declared and paid were $15,400. 2. Equipment which cost $9,900 and had accumulated depreciation of $2,000 was sold for $3,400. 3. No noncash investing and financing activities occurred during 2022. Prepare a statement of cash flows for 2022 using the indirect method. Compute free cash flow.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Monty Corp.’s comparative balance sheets are as follows.
Additional information:
|
Monty Corp.
Comparative Balance Sheets December 31 |
||||||
|---|---|---|---|---|---|---|
|
2022
|
2021
|
|||||
|
Cash
|
$ 16,700
|
$ 17,500
|
||||
|
|
25,100
|
22,300
|
||||
|
Investments
|
19,850
|
15,850
|
||||
|
Equipment
|
60,050
|
69,950
|
||||
|
|
(14,150
|
)
|
(10,100
|
)
|
||
|
Total
|
$107,550
|
|
$115,500
|
|
||
|
Accounts payable
|
$ 14,750
|
$ 11,150
|
||||
|
Bonds payable
|
11,000
|
30,000
|
||||
|
Common stock
|
49,900
|
45,300
|
||||
|
Retained earnings
|
31,900
|
|
29,050
|
|
||
|
Total
|
$107,550
|
|
$115,500
|
|
Additional information:
| 1. | Net income was $18,250. Dividends declared and paid were $15,400. | |
| 2. | Equipment which cost $9,900 and had accumulated depreciation of $2,000 was sold for $3,400. | |
| 3. | No noncash investing and financing activities occurred during 2022. |
Prepare a statement of cash flows for 2022 using the indirect method. Compute free cash flow .
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education