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
|
||||
|
|
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 .
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