161. Based on the following, what is free cash flow?
Cash from Operations$155,000
Cash from Investing$(30,000)
Cash from Financing$ 30,000
162. Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:
End Beginning
Cash$ 67,000$73,000
Accounts receivable (net)73,00060,000
Inventories54,00047,000
Accounts payable
(merchandise creditors)43,00037,000
Salaries payable2,8003,800
Sales (on account)210,000
Cost of merchandise sold70,000
Operating expenses other than depreciation67,000
163. On the basis of the following data for Branch Co. for the year ended December 31, 2011 and the preceding year, prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities.
Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were net income of $56,000 and cash dividends declared and paid of $18,000.
YearYear
2011 2010
Cash$65,000$ 54,000
Accounts receivable (net)78,00085,000
Inventories106,50090,000
Land--20,000
Equipment495,000370,000
Accumulated depreciation(215,000)(158,000)
$529,500$461,000
Accounts payable (merchandise creditors)$ 53,500$ 55,000
Common stock, $10 par200,000170,000
Paid-in capital in excess of par--
common stock62,00060,000
Retained earnings214,000176,000
$529,500$461,000