Additional data: 1. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had accumulated depreciation of $9,500 at the time of sale. 3.
Additional data: 1. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had accumulated depreciation of $9,500 at the time of sale. 3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Just need help computing the
Transcribed Image Text:Additional data:
1.
Depreciation expense was $17,500.
2.
Dividends declared and paid were $20,000.
During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had accumulated
depreciation of $9,500 at the time of sale.
3.
4.
Bonds were redeemed at their carrying value.
5.
Common stock was issued at par for cash.
Transcribed Image Text:Warner Company
Statement of Cash Flows - Indirect Method
For the Year Ended Decamber 21,2022
Cash Flows from Operating Activitles
Net income
22000
Adjustments to reconcile net income to
Net Caah Provided lby Operaing Activilea
Deprecietion Expenae
17500
Increase In Accounta Recelvable
-6000
Increase In Accounta Payable
4000
Decrease in Income Taa Payable
-1000
Increase in Inventory
-8000
6500
Net Caah Provided by Operating Activielea v
38500
Cah Flowa from Inveating Actvtlea
Sale of Equlpment
Net Cash Provided by Investing Activities
Cash Flowa from Financing Activitlea
Redemptlon of Bonda
-16000
Payment of Dhvidends
-20.000
Issuance of Common Stock
4000
Net Cash Used by Financing Activities
-32000
Net Incresse in Cash
15000
Cash at Beginning of Perfod
20000
Cash at End of Perlod
35000
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Your answer is incorrect.
Compute free cash flow. (Show amounts that decrease cash flow with either a- signeg -15,000 or in parenthesis eg. (15,000))
Free cash flaw
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