The income statement and additional data of Seacrest Services, Inc., follow:

Additional data follows:
a. Acquisition of fixed assets totaled $122,000. Of this amount, $105,000 was paid in cash and a $17,000 note payable was signed for the remainder.
b. Proceeds from sale of land totaled $28,000. No gain or loss was recognized onthe sale.
c. Proceeds from issuance of common stock totaled $34,000.
d. Payment of long-term note payable was $17,000.
e. Payment of dividends was $11,000.
f. Data from the comparative balance sheet follow:

1. Prepare Seacrest Services’ statement of cash flows for the year ended September 30, 201 2, using the indirect method.
2. Calculate Seacrest Services’ free cash flow for the year ended September 30, 2012.
3. Evaluate Seacrest Services’ cash flows for the year. In your evaluation, mention all three categories of cash flows as well as free cash flow and give the reason for yourevaluation.

  • CreatedApril 29, 2014
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