Question: Meera Corporations comparative balance sheets are presented below. Additional information: 1. Net income was $22,630. Dividends declared and paid were $19,500. 2. All other changes

Meera Corporation€™s comparative balance sheets are presented below.

Additional information:
1. Net income was $22,630. Dividends declared and paid were $19,500.
2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $5,000.
Instructions
(a) Prepare a statement of cash flows for 2014 using the indirect method.
(b) Compute free cashflow.

Meera Corporation Comparative Balance Sheets December 31 2014 2013 Cash Accounts receivable Land Buildings Accumulated depreciation buildings 14,700 20,800 20,000 70,000 (15,000) $110.500 10,700 23,400 26,000 70,000 (10,000) $120,100 Total Accounts pavable Common stock Retained earnings $12,370 75,000 23,130 $110,500 $28,100 72,000 20,000 $120,100 Total

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