Prepare a statement of cash flows, Cost Accounting

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                                      2012                     2011

Cash                               12200                 17700

Acct receivable                  25200                  22300

Investments                     25000                 16000

Equipment                       60000                  70000

Accum. Depreciation          (14000)              (10000)

Total                               108,400              116000

Acct  payable                    14600                11100

Bonds payable                   10000                30000

Common stock                  50000                45000

Retained earning               33800               29900

Total                                108400             116000

Additional info:

1. Net income was 17,300. Dividends declared and paid were 13400.

2. Equipment which cost 10000 and had accumulated depreciation of 2200 was sold for 3800

3. All other changes in non current account balance had a direct effect on cash flows, except the change in accumulated depreciation.

Prepare a statement of cash flows for 2012 using the indirect method and compute a free cash flow.


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