Solution-Create a statement of cash flows

Create a statement of cash flows

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Reference no: EM133061352

Below is a condensed version of the comparative balance sheets for Sanchez Corporation for 2011 and 2012:

	2012	2011
Cash	$157,000	$78,000
Accounts Receivable	180,000	185,000
Investments	52,000	74,000
Equipment	298,000	240,000
Less Accumulated depreciation	(106,000)	(89,000)
Current liabilities	134,000	151,000
Common Stock	160,000	160,000
Retained Earnings	287,000	177,000

Additional information:

Investments were sold at a loss (not extraordinary) of $7,000; no equipment was sold; cash dividends paid were $50,000; and net income was $160,000.

Required:

(a) Create a statement of cash flows for 2012 for Sanchez Corporation.

(b) Calculate the company's free cash flow.

Reference no: EM133061352

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Create a statement of cash flows

Reference no: EM133061352

Reference no: EM133061352

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