The following is a condensed version of the comparative balance sheets for Shira Corporation for the last two years at December 31. 2020 2019 Cash $ 389,400 $ 171,600 Accounts receivable 396,000 407,000 Investments 114,400 162,800 Equipment 655,600 528,000 Accumulated Depreciation-Equipment (233,200 ) (195,800 ) Current liabilities 294,800 332,200 Common stock 352,000 352,000 Retained earnings 675,400 389,400 Additional information:Investments were sold at a loss of $22,000; no equipment was sold; cash dividends paid were $66,000; and net income was $352,000. Prepare a statement of cash flows for 2020 for Shira Corporation. Determine Shira Corporation’s free cash flow.
The following is a condensed version of the comparative balance sheets for Shira Corporation for the last two years at December 31. 2020 2019 Cash $ 389,400 $ 171,600 Accounts receivable 396,000 407,000 Investments 114,400 162,800 Equipment 655,600 528,000 Accumulated Depreciation-Equipment (233,200 ) (195,800 ) Current liabilities 294,800 332,200 Common stock 352,000 352,000 Retained earnings 675,400 389,400 Additional information:Investments were sold at a loss of $22,000; no equipment was sold; cash dividends paid were $66,000; and net income was $352,000. Prepare a statement of cash flows for 2020 for Shira Corporation. Determine Shira Corporation’s free cash flow.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following is a condensed version of the comparative
|
2020
|
2019
|
|||||
|---|---|---|---|---|---|---|
|
Cash
|
$ 389,400 | $ 171,600 | ||||
|
|
396,000 | 407,000 | ||||
|
Investments
|
114,400 | 162,800 | ||||
|
Equipment
|
655,600 | 528,000 | ||||
|
|
(233,200 | ) | (195,800 | ) | ||
|
Current liabilities
|
294,800 | 332,200 | ||||
|
Common stock
|
352,000 | 352,000 | ||||
|
|
675,400 | 389,400 |
Additional information:
Investments were sold at a loss of $22,000; no equipment was sold; cash dividends paid were $66,000; and net income was $352,000.
Prepare a statement of
Determine Shira Corporation’s
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