The following is a condensed version of the comparative balance sheets for Zubin Mehta Corporation for the last two years at December 31.

Additional information:

Investments were sold at a loss of $10,000; no equipment was sold; cash dividends paid were $30,000; and net income was $160,000.

Instructions

a. Prepare a statement of cash flows for 2020 for Zubin Mehta Corporation.

b. Determine Zubin Mehta Corporation?s free cash fl ow.

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2020 2019 Cash Accounts receivable Investments Equipment Accumulated depreciation-equipment Current liabilities Common stock Retained earnings $ 78,000 $177,000 180,000 52,000 298,000 (106,000) 185,000 74,000 240,000 (89,000) 134,000 151,000 160,000 307,000 160,000 177,000